Break-even ROAS calculator for online stores
Enter your average order value, margin and target profit: the calculator shows break-even ROAS, how many orders you need to sell and what ad budget to set. No sign-up; the maths runs in your browser and nothing is sent anywhere.
Where the budget goes: a sample on demo data
Demo data The calculator shows how much ROAS you need. The other half of the question is where your ads already pay back. Below is a sample split of spend by product segment for a fictional shop, Demo Store, 120 products, 30% margin (break-even ROAS ×3.33). The segments come from the same calculation as in the service.
31% of spend went to 56 products with no sales at all, and the overall ROAS of ×3.16 is below the break-even ×3.33.
| Segment | Products | Share of spend | ROAS |
|---|---|---|---|
| Winners | 32 | 30.6% | ×7.81 |
| Watch | 2 | 1.7% | ×3.92 |
| Weak return | 29 | 33.7% | ×2.03 |
| Soft drain | 31 | 5.6% | ×0.38 |
| Hard drain | 22 | 28.2% | ×0 |
| Not enough data | 4 | 0.2% | ×0 |
This describes where the money went in the period, not a forecast: the split alone does not promise more sales after you exclude products. “No sales” means a product with no conversions in the period.
How it is calculated
- Ad cost per order = average order value ÷ ROAS.
- Profit per order = average order value × margin − ad cost per order.
- Orders needed = target profit ÷ profit per order. Budget = orders × ad cost per order.
- Break-even ROAS = 1 ÷ margin. Below that ROAS the ads cost more than the product earns in margin.
This is profit before the other costs of the business (delivery, returns, fees, salaries): to include them, enter a margin that is already net of them. The result is a planning guide, not a promise.
Break-even ROAS by margin
How much revenue each unit of ad spend must bring to break even on the product and the ads.
| Margin before ads | Break-even ROAS | As a percentage |
|---|---|---|
| 10% | ×10 | 1000% |
| 15% | ×6.67 | 667% |
| 20% | ×5 | 500% |
| 25% | ×4 | 400% |
| 30% | ×3.33 | 333% |
| 40% | ×2.5 | 250% |
| 50% | ×2 | 200% |
ROAS questions
What is ROAS and how is it calculated?
ROAS is the revenue from ads divided by the ad spend. Spent 10,000, got 60,000 in revenue: ROAS is 6, or 600%. It is revenue, not profit, so ROAS alone does not show whether ads pay off: you also need the margin.
What ROAS counts as break-even?
One divided by the margin. At a 25% margin, break-even ROAS is 4: every unit of ad spend must bring 4 units of revenue to break even on the product and the ads. Other business costs are not included.
Does the calculator include delivery, returns and fees?
No. To include them, enter a margin that is already net of those costs. Otherwise the result is more optimistic than reality.
Where do I get my average order value and ROAS?
In Google Ads: conversions and conversion value by campaign for the period you need. In the AgencyOS 24/7 dashboard the average order value of each campaign is filled into the calculator for you.
Is the data I enter stored?
No. The calculation runs in your browser and nothing is sent to the server.
Calculate with your real data
Connect Google Ads (read-only access) and the service fills in the average order value and ROAS for every campaign and shows where spend goes without sales.