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At what ROAS do your ads start making money?

Break-even ROAS is one divided by your margin before ads. In the example the margin is 46.5%, so you break even at a ROAS of 2.15, and can pay up to $23.25 per order. Below that, the ads lose money. Enter your own numbers, with no sign-up.

Your numbers

Break-even ROAS is 2.15. Above that, the ads make money.

The result
MeasureResultFormula
Profit before ads, per order$23.25price − cost − shipping − fees
Margin before ads46.5%profit before ads ÷ price
Break-even ROAS2.151 ÷ margin before ads
Most you can pay per order$23.25profit before ads
ROAS for the profit you want2.741 ÷ (margin before ads − profit you want)
Sales that earn the budget back$2,150.54budget ÷ margin before ads
Orders that earn the budget back44budget ÷ profit before ads, rounded up

A worked example

Price $50, cost $20, shipping $5, and a fee of 2.9% plus $0.3, which comes to $1.75. That leaves $23.25 before ads, a 46.5% margin. One divided by that margin gives a ROAS of 2.15. On a $1,000 budget you need $2,150.54 in sales, which is 44 orders.

What this calculator leaves out

Returns, discounts, fixed costs, VAT or sales tax, and the value of a customer who comes back. It also can’t tell which sales really came from the ads: it assumes the ROAS you compare against is accurate.

Who this suits, and who it doesn’t

A good fit

  • Anyone running campaigns who needs a clear line: above it, keep going; below it, stop or fix.

Pick something else

  • A business that earns mostly from repeat purchases. It should calculate on lifetime value, not the first order.

Questions

What is the break-even ROAS formula?

One divided by your margin before ads. A 50% margin gives a break-even ROAS of 2: every dollar of ads has to bring in two dollars of sales.

Does a ROAS above break-even mean I’m profitable?

It means sales cover the ads and the costs you entered. Fixed costs, returns and wages are not included, so the business as a whole needs a higher ROAS.

Why does the ROAS in my ad report differ from my results?

Each ad platform credits itself with sales by its own rules, and the same sale can be counted twice. Compare real revenue with total spend.

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Sources

Every competitor figure on this page was checked on its official page, on the date beside the source.

  1. stripe.com/pricing Stripe’s standard US rate, 2.9% + 30¢, is the example’s default fee. Checked 2026-11-08

Updated

Written and checked by Or Avrahami, Founder of Waise ·

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