What does break-even ROAS mean?

Break-even ROAS is the revenue divided by the maximum ad spend you can afford before profit reaches zero.

Is a higher break-even ROAS good or bad?

A higher break-even ROAS means you need more revenue per dollar of ad spend, so the product has less room for advertising cost.

Does this include repeat purchases?

No. This is a single-order estimate. Include lifetime value separately if repeat purchase behavior is reliable.

Ads math

Break-even ROAS Calculator

Calculate the ROAS, ACOS, and ad spend level where an order breaks even.

US / USD Last updated: June 14, 2026

Inputs

Revenue per orderCustomer-paid order revenue before ad spend.$Product costCOGS, supplier base cost, or product cost.$Fulfillment costShipping, packaging, warehouse, or fulfillment cost.$Platform feeMarketplace, referral, or selling fee percentage.%Payment feePayment processing percentage.%Fixed feesFixed per-order fees.$

Results

Break-even ROAS2.58x

Max ad spend$38.80

Break-even ACOS39.0%

Revenue

$100.00

Platform fee10% of revenue.

- $10.00

Payment fee2.9% of revenue.

- $2.90

Fixed feesFixed transaction, marketplace, or handling fees.

- $0.30

Product costCost of goods sold or supplier base cost.

- $40.00

Fulfillment costShipping, fulfillment, or warehouse cost.

- $8.00

Profit available for ads

$38.80

Break-even ROAS equals revenue divided by profit available before ad spend.

For Amazon ads, ACOS is the inverse view: ad spend divided by revenue.

Formula

Profit before ads = revenue - product cost - fulfillment cost - platform fees - payment fees - fixed fees.

Break-even ROAS = revenue / profit before ads.

Break-even ACOS = profit before ads / revenue.

Example

If a $100.00 order has $40.00 product cost, $8.00 fulfillment cost, 10% platform fees, 2.9% payment fees, and $0.30 fixed fees, the remaining profit before ads is the maximum break-even ad spend.

Assumptions

This calculator uses order-level economics only. It does not include customer lifetime value, blended CAC, refunds, tax, payment holds, or inventory carrying costs.

Sources and update notes

Google Ads ROAS overview

Disclaimer

Last updated: June 2026. Rates may vary by country, category, seller plan, account status, promotion, and payment method. This calculator provides estimates only and should not be treated as financial, tax, or legal advice.