ROAS Calculator with Break-Even and Target ROAS
Work out the ROAS your ads need from what an order really costs: break-even ROAS, target ROAS for the profit you want, the break-even when repeat orders are counted, and the maximum CPA. Then check up to eight campaigns against those lines, adjusted for over-reported revenue.
Press Calculate.
What this ROAS calculator does differently
Return on ad spend is revenue divided by ad spend. The figure is easy; knowing whether it is good enough is not. A ROAS of 3x makes money for one shop and loses it for another, depending on what each order costs to deliver. This calculator starts from the cost of an order and gives the three lines a ROAS should be judged against, then checks each of your campaigns against them.
| Third Door Media | Shopify | Madgicx | This tool | |
|---|---|---|---|---|
| ROAS | Yes | In the article | Current ROAS input | Per campaign and in total |
| Break-even ROAS | No | 1 / margin | From per-order costs | From per-order costs |
| Refunds and returns | No | Not covered | Yes | Yes |
| Target ROAS for a profit margin | No | No | Field, formula not shown | Yes, formula shown |
| Repeat purchases | No | Discussed only | No | Break-even counting repeat orders |
| Several campaigns | No | No | No | Up to eight, with a verdict each |
| Over-reported revenue | No | Mentioned | No | Adjust reported revenue |
| Export | None | None | Copy link | CSV, Markdown, share link |
Pages as fetched on 1 November 2026. Anything not shown or described on the page is not counted.
Break-even ROAS, target ROAS and maximum CPA
Every order leaves some money after product cost, shipping, payment fees, other per-order costs and the share lost to refunds: its contribution. Divide it by the order value and you have the margin, m. Ad spend has to come out of that contribution, so:
- Break-even ROAS is 1 / m. At a 40% margin, every 1 of ad spend needs 2.50 of revenue to break even.
- Target ROAS is 1 / (m – p), where p is the profit margin you want left after ads. At a 40% margin and a 10% target, that is 1 / 0.30, about 3.33. Google Ads uses the same name for a bidding strategy that aims for a ROAS you set (About Target ROAS bidding); this figure is a sensible input for it.
- Maximum CPA is the contribution per order itself: the most you can pay to win an order without losing money on it.
These lines exclude fixed costs such as salaries and software, which do not rise with each order. Cover those from the profit above break-even, or work them into the target margin.
When a first order can lose money
If customers come back, the first order does not have to carry the whole acquisition cost. Enter the repeat orders a new customer places within the window you care about, such as 0.6 in twelve months, and the calculator shows the first-order ROAS that breaks even once those orders are counted: 1 / (m x (1 + repeat orders)). Campaigns between this line and break-even lose money on the first order and earn it back later, which is acceptable only if the repeat rate is measured, not hoped for. For subscriptions, the LTV calculator and CAC payback calculator give the fuller view.
Reported ROAS and real ROAS
Ad platforms report the revenue they attribute to themselves, and they attribute generously: view-through conversions, customers who would have bought anyway, sales also claimed by another channel. The figures reflect each platform’s attribution rules, not proof that the ad caused the sale. If a holdout test or your own analytics shows the platform claims more than it causes, enter the real share and every campaign is judged on adjusted revenue. Brand search and retargeting are the usual places where reported and real ROAS diverge most.
How to use this ROAS calculator
- Enter one orderOrder value before tax, product cost, shipping, payment fee, other per-order costs and refund rate.
- Read the three linesBreak-even, target and repeat-purchase break-even ROAS, and the maximum CPA.
- Set your targetsThe profit margin you want after ads, and repeat orders per new customer if you have them.
- Add campaignsSpend and reported revenue for each campaign, up to eight.
- Adjust for over-reportingEnter the share of reported revenue that is real, if you know it.
- Act on the verdictsScale what is above target, fix or cut what loses money, and check the rest against repeat orders.