Use the output as a threshold, not a forecast.
ROAS is not a universal target. A store with high gross margin can survive a lower ROAS than a store selling heavy, low-margin products. The useful threshold is derived from the contribution left after every non-advertising variable cost.
This calculator gives two thresholds: break-even ROAS, where order profit is zero, and target ROAS, where the order still produces the profit amount you specify. Use blended, platform and cohort data separately instead of assuming that one attribution view is exact.
Break-even ROAS formula
Pre-ad contribution equals net order revenue minus product cost, shipping, fulfillment, payment/platform fees and expected return loss. Break-even CPA is that contribution amount.
Break-even ROAS equals net order revenue divided by break-even CPA. Target ROAS replaces break-even CPA with contribution minus target profit. When contribution is non-positive, no paid acquisition level can make the order profitable without changing the offer.
A 60.00 order with 18.00 COGS, 6.00 shipping, 3.00 fulfillment, payment fees and an expected return allowance has only the remaining contribution available for advertising and profit.
What this calculation does—and does not include.
Included in this model
- Order revenue and pre-ad contribution
- Product, fulfillment, payment/platform fees and expected returns
- Maximum CPA and break-even ROAS
- Editable acquisition target assumptions
Not automatically included
- Incrementality or attribution modeling
- Fixed overhead unless entered
- Future demand or conversion-rate forecasts
- Platform-reported ROAS reconciliation
Formula model — no universal platform rate
Reviewed 2026-08-23. Review dates describe the live model, not a guarantee that a third-party fee has not changed since.
Limitations to keep visible
- ROAS does not model cash timing, repeat purchase, customer lifetime value, incrementality or attribution error.
- Use a conservative return loss and include discounts actually granted, not the advertised list price.
- For subscription or repeat-purchase businesses, build a separate cohort LTV model before bidding against future value.
Questions this calculator is designed to answer.
break-even ROAS calculator
Derive the minimum ROAS from pre-ad contribution instead of using a generic target.
ROAS reference table →maximum CPA calculator ecommerce
Maximum CPA is the contribution available before advertising; target CPA should leave room for desired profit.
Maximum CPA reference →target CPA vs break-even CPA
Break-even CPA produces zero modeled order profit; target CPA reserves a profit buffer.
Advertising profitability hub →Frequently asked questions
Is break-even ROAS the ROAS I should target?+
No. It is the point where modeled profit reaches zero. A working target normally needs room for overhead, tax, attribution error and desired profit.
Should I include agency fees?+
Per-order or percentage media fees belong in platform fees. Fixed retainers are better handled in a monthly store-profit model.
What return number should I use?+
Use the net economic loss after refunds, lost product value, reverse shipping, handling and recoveries, multiplied by the expected return rate.