Advertising · United States

Break-Even ROAS Calculator

Break-even ROAS is the return on ad spend at which your ad channel neither makes nor loses money. Enter selling price, product cost, shipping, fees, and returns to get your break-even ROAS.

Inputs

Average selling price / AOV ($)

COGS per order ($)

Shipping absorbed per order ($)

Marketplace / payment fees (%)

Return rate (%)

Result

Fees per order: $3.00
Contribution margin (before returns): $33.00
Contribution after 8.00% returns: $30.36
Break-even ROAS: 1.98x
Suggested target ROAS (with 15% profit): 2.27x

Method

Break-even ROAS = Price ÷ Contribution margin per order. Contribution margin = Price − (COGS + Shipping + Fees + Return loss).

Frequently asked questions

What if my ROAS is above break-even but I'm still losing money?

Ad-reported ROAS often overstates true incremental ROAS because of view-through and attribution. Compare to blended ROAS from total revenue and total ad spend.

Do I use gross or net contribution?

Use contribution margin after all variable costs. Fixed overhead (rent, salaries) should be covered by target ROAS above break-even.

Method and guidance reviewed by the AIFlowBiz Editorial Team.