Ad profitability

Break-even ROAS calculator for ecommerce

Calculate the ROAS you need to cover order and ad costs. Also check the maximum CPA and target ROAS for the margin you choose.

Break-even ROAS does not include company fixed costs unless you add them manually as an extra variable cost.

Basic data

Currency

Purchase value reported in ads

The ad platform may report a different purchase value. Compare this field with the conversion value shown in your ads dashboard.

Average product value per order (gross)

Shipping paid by customer (gross)

Average sales tax rate

Product cost per order

Enter net cost if you reclaim sales tax.

Shipping cost paid by the store

Packing and fulfillment

Payment processor fee (%)

Fixed fee per transaction

Calculations run locally in your browser. Asttero never receives the amounts you enter.

Result

— Break-even ROAS

Maximum CPA—
Margin after variable costs—
Target ROAS for 5% margin—
Target ROAS for 10% margin—
Target ROAS for 15% margin—
Target ROAS for your chosen margin—
Ad cost per order—
Result per order at current ROAS—
Margin after ad spend at current ROAS—
Estimated monthly reported revenue—
Estimated monthly result after ad spend—

ROAS	Ad cost per order	Result per order	Margin after ad spend	Status

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How is break-even ROAS calculated?

The calculator first works out how much is left from an average order after sales tax, returns, and variable costs other than advertising. That amount is the maximum CPA. Break-even ROAS is the purchase value reported in ads divided by the maximum CPA.

Break-even ROAS = purchase value reported in ads / maximum CPA

What do these terms mean?

Break-even ROAS: The minimum ROAS at which margin from the sale covers ad spend and the other variable costs included in the calculator. Below this threshold, the order runs at a loss after advertising.
Maximum CPA: The maximum acquisition cost per order at which the result after variable costs and ad spend is zero. It is the same amount as the margin after variable costs before advertising.
Purchase value reported in ads: The amount your ad platform treats as the conversion value (e.g. purchase value). It should match how you report ROAS in Meta, Google Ads, or another channel.
Target ROAS: The ROAS needed so that, after variable costs and ad spend, the margin you target is left over (e.g. 5%, 10%, or 15% of net revenue after returns).
Current CPA: The estimated acquisition cost per order at your given current ROAS: reported purchase value divided by current ROAS.

FAQ

What does break-even ROAS mean?

It is the minimum ROAS at which margin from the sale covers ad spend and the other variable costs included in the calculator.

Does a ROAS above break-even mean the business is profitable?

Not always. The result may still not cover fixed costs, salaries, software, taxes, and other expenses that were not allocated to the order.

Should I use gross or net values for ROAS?

Enter the value consistent with how your ad platform reports it. The calculator separately converts gross revenue to net using the VAT rate you provide.

How do I account for returns?

Add the estimated return rate as a percentage of sale value. The higher the return rate, the higher the required break-even ROAS.

What is the difference between break-even ROAS and target ROAS?

Break-even ROAS produces a zero result after variable costs and ad spend. Target ROAS leaves the additional margin you specify.

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