ROAS & Breakeven Calculator
ROAS alone tells you nothing without your margin. Enter your numbers to get ROAS, CPA and the breakeven ROAS floor your ads must clear.
Result
Breakeven ROAS = price ÷ (price − COGS − shipping − fees). Revenue is adjusted for refunds; ad spend is not recoverable on refunded orders.
Read the floor, not the vanity number
A 3.0x ROAS feels great until you realize your breakeven is 3.2x. The floor comes from unit economics: at a $75 AOV with $28 in COGS/shipping and $4.50 in fees, contribution per order is $42.50, so breakeven ROAS = 75 ÷ 42.5 ≈ 1.76x. Anything above that is (before overheads) profit.
Formulas used
- ROAS = attributed revenue ÷ ad spend
- CPA = ad spend ÷ orders, where orders = revenue ÷ AOV
- Breakeven ROAS = AOV ÷ (AOV − COGS − shipping − fees)
- Net profit = (AOV − COGS − shipping − fees) × orders × (1 − refund rate) − ad spend
FAQ
What is a good ROAS?
There is no universal number. At 60% gross margin you break even near 1.67x; at 25% margin you need 4x. Compare against your own breakeven floor from this calculator.
Should I include the Shopify subscription here?
For a quick ad-level check, no — this tool measures contribution margin. Use the Shopify Profit Calculator for the fully loaded per-order number.
Why adjust revenue for refunds?
Refunded orders claw back revenue (and usually COGS), but the ad spend on them is gone. High refund rates quietly inflate ROAS on dashboards.