Free BE ROAS Calculator
Calculate the minimum ROAS your ecommerce campaigns need to cover COGS, shipping, fulfillment and platform fees. Enter your unit economics below to see break-even ROAS, maximum CPA, contribution margin and target ROAS.
The BEROAS calculator estimates that you need at least $2.60 in revenue for every $1.00 spent on ads to break even.
View cost breakdown
- Product cost / COGS
- $14.00
- Shipping
- $5.00
- Fulfillment
- $0.00
- Payment fees
- $1.05
- Platform fees
- $0.00
- Creator / affiliate commission
- $0.00
- Return and refund allowance
- $0.00
- Other variable costs
- $1.50
- Total variable costs before ads
- $21.55
Explore price and product cost scenariosOpen the comparison matrix
BEROAS calculator price and cost scenarios
Compare basic price and product-cost scenarios. Gray cells are already at a loss before advertising. The detailed result above includes shipping and fees.
| Product cost | 22.55 | 20.50 | 18.63 | 16.94 | 15.40 | 14.00 | 12.60 | 11.34 | 10.21 | 9.19 | 8.27 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| 17.50 | |||||||||||
| 21.00 | |||||||||||
| 24.50 | |||||||||||
| 28.00 | |||||||||||
| 31.50 | |||||||||||
| 35.00 | |||||||||||
| 38.50 | |||||||||||
| 42.00 | |||||||||||
| 45.50 | |||||||||||
| 49.00 | |||||||||||
| 52.50 | |||||||||||
| Product cost | 22.55 | 20.50 | 18.63 | 16.94 | 15.40 | 14.00 | 12.60 | 11.34 | 10.21 | 9.19 | 8.27 |
Select a valid scenario to update selling price and product cost in the full fee-aware result above.
What is break-even ROAS?
Break-even ROAS is the revenue-to-ad-spend ratio at which an order covers product and variable costs but produces no profit. The BEROAS calculator turns your actual unit economics into that threshold.
A campaign ROAS can look strong while the product still loses money. The missing context is contribution margin: the revenue left after COGS, shipping, fulfillment, processing fees, platform fees, and other per-order costs.
Once the BEROAS calculator finds that margin, it also shows break-even CPA. That is the maximum amount you can spend to acquire one average order before profit reaches zero.
A lower break-even point creates more room for campaign volatility and profit. A higher point means advertising must work harder before the store keeps any revenue as profit.
Use the result as a decision threshold, then compare it with current ROAS. For a full explanation, read what break-even ROAS means.
Break-even ROAS formula
The BEROAS calculator uses contribution margin before advertising, not gross revenue alone. A reliable BEROAS calculator must reject zero or negative contribution margin.
Revenue ÷ Contribution MarginContribution Margin = Revenue − Product Cost − Shipping − Fulfillment − Payment Fees − Platform Fees − Creator Commissions − Return Allowance − Other Variable Costs
When contribution margin is zero or negative, there is no valid positive BEROAS. The product already loses money before advertising, so the calculator asks you to fix price or costs instead of displaying Infinity, NaN, or a misleading negative ratio.
A BEROAS calculator example
This illustrative model shows how a creator commission changes the result. It is an example, not reported store performance.
| Order item | Amount |
|---|---|
| Base model | 35.46% margin · 2.82x BE ROAS |
| With 10% creator commission | 25.46% margin · 3.93x BE ROAS |
In the base model, dividing 1 by the 35.46% contribution margin gives 2.82x. Adding a 10% creator commission reduces contribution margin to 25.46%, so the threshold rises to 3.93x. The same relationship applies to refunds and other percentage costs.
Break-even ROAS vs target ROAS
Break-even ROAS
This is the survival line. Hitting it covers non-ad costs and ad spend, but leaves no operating profit. The BEROAS calculator uses order costs to establish it.
Target ROAS
This is the performance goal. The BEROAS calculator preserves the profit margin you choose, so target ROAS must be higher than break-even ROAS when you want positive profit.
Why BEROAS matters for ecommerce
A Meta Ads, TikTok Ads, or Google Ads dashboard reports attributed revenue and spend. It does not know every product cost. A BEROAS calculator adds the store economics required to judge that campaign.
For Shopify and dropshipping stores
Margins can change with shipping, supplier cost, discounts, payment mix, and average order value. Recalculate when those inputs move rather than using one permanent benchmark.
For performance marketers
Use the BEROAS calculator as a guardrail, not the only KPI. Cash flow, returns, taxes, overhead, attribution quality, and repeat purchase value may change the final business decision.
Common break-even ROAS mistakes
A precise formula still produces a weak planning number when revenue and costs use different assumptions.
Using revenue before refunds
Use a refund allowance based on a reliable period when returned orders materially reduce retained revenue. Do not add the same refund impact twice.
Leaving out percentage costs
Payment, marketplace and creator fees are often charged as a share of revenue. Omitting them overstates contribution margin and understates the required ROAS.
Mixing product-level inputs
Keep average order value, COGS and variable costs from the same product mix and time period. A blended AOV paired with a single product cost can distort the threshold.
Treating break-even as the goal
Break-even leaves no modeled contribution profit after ads. Use Target ROAS to reserve profit and leave room for costs excluded from the per-order calculation.
How this calculator handles costs
The model is designed for per-order planning and uses the values you enter. Last updated: August 2026.
Included variable costs
COGS, shipping, fulfillment, payment fees, platform fees, creator or affiliate commission, expected return and refund allowance, and other per-order costs reduce contribution margin before ads.
Excluded fixed overhead
Payroll, software, rent, taxes, financing and other non-variable business costs are not automatically included. Add a defensible per-order allocation under other variable costs only when that matches your planning method.
VAT and sales tax
Enter selling price net of recoverable VAT or sales tax and avoid counting the same tax in both revenue and costs. Treatment varies by jurisdiction, so use the accounting basis applied by your business.
Targets and limitations
Target ROAS reserves your chosen profit margin before fixed overhead and taxes. Results are estimates for operating decisions, not accounting, tax, investment, or financial advice.
BEROAS calculator questions
What does BEROAS measure?
BEROAS measures break-even return on ad spend. It finds the minimum revenue your store must earn for each advertising dollar before the order stops losing money. The threshold comes from your selling price and variable costs.
How do you calculate break-even ROAS?
Subtract product cost, shipping, fulfillment, payment fees, platform fees, and other per-order costs from revenue. Divide revenue by the remaining contribution margin. If revenue is $50 and contribution margin is $27, break-even ROAS is 50 divided by 27, or 1.85x.
What is a good break-even ROAS?
A lower break-even ROAS usually gives an advertiser more room to operate, but there is no universal good number. Product margin and cost structure determine the right threshold. Compare actual ROAS with your own break-even result.
Is a 2 ROAS profitable?
A 2x ROAS is profitable only when your break-even ROAS is below 2x. If your break-even point is 2.4x, a 2x campaign loses money even though revenue is twice ad spend.
What is the difference between ROAS and BEROAS?
ROAS measures actual campaign revenue divided by ad spend. BEROAS is the minimum ROAS needed to cover product and order costs. One reports performance; the other sets the profitability threshold.
Are BEROAS, BE ROAS, and breakeven ROAS the same?
Yes. BEROAS, BE ROAS, break-even ROAS, and breakeven ROAS describe the same profitability threshold. A BE ROAS calculator and a breakeven ROAS calculator use the same contribution-margin formula as the BEROAS calculator.
How do I calculate break-even CPA?
Break-even CPA equals contribution margin per order. Selling price minus every non-ad variable cost gives the maximum acquisition cost you can pay before order profit reaches zero.
Should break-even ROAS include shipping?
Yes. Include customer shipping, supplier shipping, or any shipping cost paid by the seller. Shipping reduces contribution margin and raises the break-even ROAS required from advertising.
Should payment fees be included in break-even ROAS?
Yes. A BEROAS calculator should include percentage and fixed payment fees when they apply to each order. Leaving them out makes the result look more profitable than the order really is.