E-Commerce ROAS & Break-Even Calculator

Find your campaign ROAS, break-even ROAS based on cost of goods sold, and true net profit after advertising spend.

USD · GBP · CAD · AUD Free, no sign-up Runs in your browser
$
Enter an amount of 0 or more.
$
Enter an amount of 0 or more.
%
Enter between 0% and 100%.
$
Enter an amount of 0 or more.
orders
Enter 0 or more.
100% private. Campaign figures stay on your device.

Campaign ROAS & profitability

— return on ad spend
  • Real net profit after ads—
  • Net campaign profit margin—
  • Break-even ROAS required—
  • Cost per Acquisition (CPA)—
  • Average Order Value (AOV)—

Unlike standard dashboard ROAS which only shows gross revenue, this calculator subtracts product manufacturing costs to reveal actual net cash profits.

How ROAS and break-even ROAS are calculated

ROAS (Return on Ad Spend) = Ad Revenue ÷ Ad Spend Break-Even ROAS = 1 ÷ [ 1 - (COGS % ÷ 100) ] Net Campaign Profit = Revenue - Product COGS - Ad Spend - Other Expenses

Why a high ROAS can still lose money

Many digital media buyers celebrate a 2.5x ROAS in Facebook Ads Manager or Google Ads without factoring in unit economics. If your product margins are slim (for example, COGS is 65%), your break-even ROAS is 1 ÷ (1 - 0.65) = 2.86x. In that scenario, running ads at a 2.5x ROAS actually loses money on every sale!

Frequently asked questions

What is considered a "good" ROAS?

A good ROAS depends entirely on your gross profit margin. High-margin digital products (85%+ margin) can scale profitably at 1.5x to 2.0x ROAS, while physical consumer goods with 50% margins generally require 3.0x to 4.0x+ ROAS to cover shipping, handling, and overhead.

What is the difference between ROAS and ROI?

ROAS measures gross revenue generated per dollar of ad spend (Revenue / Ad Spend). ROI (Return on Investment) measures net profit earned relative to total costs including production, staffing, and overhead [(Net Profit / Total Investment) × 100%].

Keep going

Related tools

All Business Tools tools

Disclaimer: results are estimates for planning only and are not tax, legal or financial advice. Rules and rates vary by country, state and personal situation. Check with a qualified accountant before making decisions. Read the full disclaimer.

Last updated: