Break-even ROAS calculator
Enter your Shopify order value and costs to find the return on ad spend you need to break even, your maximum cost per purchase, and how many orders cover your ad budget.
Break-even ROAS
1.96×
Net revenue required per unit of ad spend.
Maximum CPA
A$56.00Contribution available for ads per order.
Orders to cover ads
17A$1,870.00 in net order revenue.
At these costs, 50.9% of your net order value is available for ads.
How to calculate break-even ROAS
Break-even ROAS is the amount of revenue each dollar of ad spend needs to generate to cover advertising and the variable costs of making a sale. The threshold changes with your order value, product costs, fulfillment, payment fees, and refunds.
Start with net order value
Use average revenue after discounts and before sales tax. Include refunds in the revenue figure or as a separate allowance, once per order. Keep all amounts in the same currency.
Find your maximum CPA
Subtract your variable costs from net order value. With an A$110 order and A$54 in costs, the pre-ad contribution is A$56. That is the most you can spend to acquire that order and cover those costs.
Calculate your ROAS threshold
Divide net order value by pre-ad contribution. A$110 ÷ A$56 is about 1.96×. Divide your ad budget by that same contribution and round up. At A$900 in spend, that takes 17 orders.
Is break-even ROAS the same as target ROAS?
Break-even ROAS covers the variable costs and ad spend included in the calculation. Set a higher target if each order also needs to contribute to fixed costs or a profit goal.
Can I compare this with Meta Ads Manager ROAS?
Use the same revenue basis and currency when comparing. Meta Ads Manager reports attributed purchase value. Your Shopify inputs account for what orders earned after discounts and the costs you entered. Differences in attribution, refunds or tax can move the two figures apart.