Break-even ROAS calculator.
Enter your AOV, gross margin %, and other per-order costs. See the ROAS (return on ad spend) you need to make any money on paid ads — and the ROAS for a profitable campaign.
Per order
Defaults work for most small shops in the EU.
Break-even ROAS
Why "we hit 2x ROAS" can still mean you're losing money.
ROAS (revenue ÷ ad spend) is the most-quoted ad metric and the most-misleading. A 2x ROAS sounds great until you realize the order also has COGS, shipping, fees, and overhead. After all costs, a 2x ROAS often means break-even or LOSS.
The formula
Break-even ROAS = AOV ÷ contribution margin per orderContribution margin = AOV − COGS − shipping − fees − other per-order costs
The trap
An AOV of €60 with 30% COGS, €5 shipping, €1.50 fees, €2 other = €18 + €5 + €1.50 + €2 = €26.50 in costs. Contribution per order is €33.50. Break-even ROAS = €60 ÷ €33.50 ≈ 1.79x. So a 1.5x ROAS means you LOST money per order.
Why most ecommerce founders don't know their break-even ROAS
Because the calculation requires real per-order cost data, not just an AOV and a margin %. Most owners use ad-platform-reported ROAS without ever calculating their actual break-even. The result is "we're hitting 2x" celebrations next to bank accounts that aren't growing.
What to do
Calculate your break-even ROAS once. Set it as a hard floor in your ad-buying decisions. Scale spend ONLY on campaigns above break-even + your target margin. Pause everything else.