Break-even ROAS Calculator
Scaling to a ROAS target you copied from someone else is how brands lose money at scale. Your break-even ROAS depends only on your own unit economics: what an order brings in and what it costs to fulfil. This calculator gives you the break-even point, the most you can pay for a purchase, and the target ROAS that leaves the profit margin you want.
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How to use the break-even roas calculator
- Enter your average order value (AOV) before shipping charged to the customer, or include shipping revenue if you want a fully loaded view.
- Enter cost of goods per order, shipping and fulfilment cost per order, payment processing as a percentage, and any other variable cost (packaging, returns allowance, affiliate fees).
- Set the net profit margin you want to keep per order after ad spend. Zero gives you pure break-even.
- Read the results: contribution margin per order, break-even ROAS (AOV divided by contribution margin), maximum CPA (contribution margin minus target profit) and target ROAS. Use target ROAS as the scaling threshold and break-even ROAS as the kill threshold.
Frequently asked questions
How do you calculate break-even ROAS?
Break-even ROAS equals average order value divided by contribution margin per order, where contribution margin is AOV minus cost of goods, shipping and fulfilment, payment fees and other variable costs. If AOV is $80 and contribution margin is $32, break-even ROAS is 2.5.
What is a good ROAS for Meta ads?
There is no universal good ROAS. A brand with 70 percent gross margin can profit at 1.8 while a brand with 35 percent margin loses money at 2.5. Calculate your own break-even first, then set a target above it that leaves the profit you need. Platform-reported ROAS also over-credits ads, so compare against blended revenue divided by total spend too.
What is the difference between break-even ROAS and target ROAS?
Break-even ROAS is the point where an order neither makes nor loses money after ad spend. Target ROAS adds the profit margin you want per order. Scale campaigns that beat target ROAS, hold campaigns between break-even and target, and cut campaigns below break-even once they have enough data.
Should I include repeat purchases or lifetime value?
For first-order break-even, no. For a scaling threshold you can lower the target by the expected contribution from repeat orders within a fixed window such as 60 or 90 days, but only if you have the retention data to back it up.
Can Loraloop apply these thresholds automatically?
Loraloop's ads agent uses your targets to propose daily budget moves: shifting spend toward ad sets above target, pausing those below break-even, and flagging anything in between. Changes wait for your approval until you decide to loosen the rules.