Break-even ROAS calculator
Break-even ROAS = net revenue ÷ profit left per order. Profit left per order is what the customer pays after any discount, minus unit cost, minus the shipping you pay, minus payment fees. Anything below that ROAS loses money on every sale.
Type the four numbers above and the ROAS appears here. We never substitute an industry average for a number only you have.
This page uses four inputs. Refunds, returns shipping, tax-inclusive pricing, currency conversion and app subscriptions all move the real floor. Run the full check to put those on the ladder.
Questions sellers ask about break-even ROAS
- How do you calculate break-even ROAS?
- Break-even ROAS = net revenue / contribution profit per order. Contribution profit is what the customer pays after any discount, minus unit cost, minus the shipping you pay, minus payment fees, minus your refund allowance. If $48.00 leaves $12.40, break-even ROAS is 3.87.
- Is break-even ROAS the same as 1 / profit margin?
- Yes, when the margin is contribution margin on the same order. Sellers get it wrong by using gross margin, which ignores shipping, payment fees and refunds — that produces a break-even ROAS that looks achievable and is not.
- Should sales tax or VAT be included?
- No. Tax you collect belongs to the tax office, so it is passed through, not revenue. Strip it out before the calculation or your break-even ROAS reads better than reality.
- What break-even ROAS do I need to be profitable?
- Any real ROAS above your break-even number makes money on that order; below it, every sale loses money. Break-even is the floor, not the target — you still need to cover fixed costs above it.
Other numbers on the same order
- Shopify fee calculator
What Shopify and your processor keep on one sale, line by line.
- Free shipping threshold calculator
The order value where free shipping stops costing you money.