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Break-even ROAS calculator

Work out the minimum ROAS you need to avoid losing money, the most you can pay for a sale and for a click, and the ROAS you would need to keep the profit you want per order.

Last updated: Free · No sign-up≈ 2 minutes

Market: United StatesCurrency: USDTax: sales tax configurable

Your numbers

The order

What the customer pays on average, including the shipping you charge.

What the goods in an average order cost you.

Logistics and payment gateway

What you pay the carrier to ship the order.

Box, filler, labels and packing materials.

The percentage your payment provider keeps.

The flat per-transaction amount your provider charges.

Advanced options

Everything below is optional. Left blank, it counts as zero.

Tax

Does the amount include sales tax?

Rates in force in United States. Only applied if you said the amount includes tax.

Enter the percentage that applies in your case.

Pick your province or territory to load the combined rate, or leave it unselected and enter a custom one.

Other variable costs

Order preparation: picking, packing, third-party logistics fee.

If you already worked it out in the cost-of-returns calculator, put it here so you do not overstate your margin.

Anything that grows with each order: gifts, affiliate commissions…

Targets and advertising

Share of visits that end in a purchase. Only needed for the CPC.

What you want left over after paying for advertising.

Google Ads and Meta usually record the gross conversion value. If your pixel sends the tax-exclusive amount, change it here.

Every calculation runs in your browser. The figures you type are never sent to a server and are never stored.

Your results will appear here

Fill in the average order value and the product cost, then press Calculate.

  1. Check the market and currency in the settings bar.
  2. Enter your average order and your costs.
  3. Press Calculate, or Load example to see how it works.

Results are estimates based on the information you enter. Fees, taxes and platform terms can change: always check the figure that matters to you against your invoice or the official platform. They do not replace your real invoices, your official accounts or professional tax, financial or legal advice.

What this tool works out

The break-even ROAS is the minimum return your advertising needs for the campaign not to lose you money. It is not calculated on revenue, but on what is actually left of each order after tax, product, shipping, packaging and fees.

That remainder is the contribution margin, and it is exactly the ceiling on what you can pay to win a sale.

ROAS, ACoS, CPA and CPC: differences and formulas →

The break-even point of each one

None of the four says anything on its own. “3x ROAS” is neither good nor bad: it depends on your margin. Break-even is always calculated from the contribution margin.

Maximum CPA = contribution margin Break-even ROAS = AOV / contribution margin Maximum ACoS = contribution margin / AOV x 100 Maximum CPC = contribution margin x CR

With a 60 order and a 20.55 contribution margin: maximum CPA 20.55, break-even ROAS 2.92x, maximum ACoS 34.24% and, at a 2% conversion rate, maximum CPC 0.41. Four numbers for the same boundary.

A store on 60% margins can live with a 1.7x ROAS. A store on 15% margins needs 6.7x. Comparing two businesses' ROAS without knowing their margins tells you nothing.

How to calculate ecommerce profitability →

Frequently asked questions

What exactly is break-even ROAS?

It is the return on ad spend at which the campaign neither gains nor loses money: the ad spend exactly consumes the contribution margin of the sales it generates. Above it you start earning; below it you are paying to sell.

Why does the result not match the ROAS Meta or Google shows me?

Because they measure different things. Platforms divide attributed revenue by spend, using their own attribution rules and without deducting tax, product, shipping or fees. This calculator tells you what ROAS you actually need; the platform tells you what ROAS it believes it is achieving. Compare both, do not confuse them.

Do I include tax in the order value?

Enter the amount exactly as you charge it and tell the calculator whether it includes tax. If it does, it is removed automatically using the rate for your market — or a custom one — because that money is not yours.

Can I use this with a market whose currency is not mine?

Yes. Pick the market you actually sell in: it sets the currency, the tax and the fee defaults. The interface language is independent, so you can read the site in English while calculating in euros, pounds, Canadian or Australian dollars.

What do I do if the contribution margin comes out negative?

It means the product loses money before you spend a penny on advertising: no ROAS can save it. You need to raise the price, cut the product cost, reduce the shipping you absorb, or stop selling it.

What is the maximum CPC for?

Bidding. If you can pay 20.55 for a sale and you convert at 2%, each click cannot average more than 0.41. That is the figure you actually use when setting bids.

Is maximum ACoS the same as break-even ROAS?

The same information inverted. ACoS is the share of revenue advertising takes; ROAS is the revenue multiple per unit spent: ACoS = 100 / ROAS. Amazon speaks ACoS; Meta and Google speak ROAS.

Should I subtract fixed costs too?

Not in this calculator: only costs that change with each order belong here. Fixed costs are paid out of the sum of the month's contribution margins, which is why it is worth working with a target ROAS above break-even.

Official sources

European Commission — VAT rates applied in EU member countrieshttps://europa.eu/youreurope/business/taxation/vat/vat-rules-rates/index_en.htm

Reviewed on August 21, 2026 · Verified at the official source

Standard and reduced rates confirmed for Spain, France, Germany and Italy.

GOV.UK — VAT rateshttps://www.gov.uk/vat-rates

Reviewed on August 21, 2026 · Verified at the official source

Checked against the official source: 20% standard rate, 5% reduced rate and zero-rated supplies (0%).

Australian Taxation Office — how GST workshttps://www.ato.gov.au/businesses-and-organisations/gst-excise-and-indirect-taxes/gst/how-gst-works

Reviewed on August 21, 2026 · Verified at the official source

10% GST on most goods and services confirmed.

There is no single source: US sales tax is state and localhttps://www.usa.gov/state-taxes

Reviewed on August 21, 2026 · Verified at the official source

We deliberately document that there is no federal rate. The field starts at 0% and is editable: no percentage is invented.

Canada Revenue Agency — which GST/HST rate to chargehttps://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/gst-hst-businesses/charge-collect-which-rate.html

Reviewed on August 21, 2026 · Verified at the official source

Checked against the official CRA table, which publishes GST/HST and PST separately. The presets in this tool are each province’s combined rate. The CRA itself warns that the applicable rate depends on the place and type of supply.

See every source and the full change log · How we calculate

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