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ROAS & Breakeven Calculator
Enter your average order value, gross margin, and current ROAS. See the ROAS you need to break even, the most you can pay per order, and how much profit each ad dollar returns, with or without an agency fee.
Quick answer
Breakeven ROAS is 1 divided by your gross margin. At a 65% margin you break even at 1.54x. If you pay a management fee, add it to the cost side: (1 + fee) divided by margin. This calculator does the math and also shows your breakeven CPA and the ROAS needed to keep 20 cents of profit per ad dollar.
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How it works
Three steps, no account
01
Set order value and margin
Use your average order value and your gross margin after product and delivery costs, before ad spend.
02
Enter your current ROAS
Use the ROAS your ad platform or store reports. Turn on the agency fee if someone manages the account for a percentage of spend.
03
Read the breakeven and target
Compare your ROAS with breakeven and with the target that leaves 20% profit on spend. Use breakeven CPA as your bid ceiling.
FAQ
Questions people ask about ROAS & Breakeven Calculator
How do I calculate breakeven ROAS?+
Divide 1 by your gross margin expressed as a decimal. A 50% margin breaks even at 2.0x, a 65% margin at about 1.54x, and an 80% margin at 1.25x. Below that number, each sale loses money on first purchase.
What is a good ROAS?+
A good ROAS is one that sits clearly above your own breakeven. A 2x ROAS is profitable for an 80% margin product and loses money for a 40% margin product, so the right target depends on margin, not on an industry average.
What is breakeven CPA?+
Breakeven CPA is the most you can pay to win one order without losing money on it. It equals average order value times gross margin, reduced by any management fee you pay on spend.
Should I include agency fees in ROAS?+
Yes, if you want to know true profit. A fee charged as a percentage of spend raises the cost of every ad dollar, which raises the ROAS you need to break even.
Why am I unprofitable with a ROAS above breakeven?+
This calculator covers first-purchase gross profit only. Returns, discounts, payment fees, fixed overhead, and over-reported platform revenue can all turn a paper profit into a loss.
Is ROAS & Breakeven Calculator free?+
Yes. ROAS & Breakeven Calculator on Knowlify is free to use with no signup and no watermark.
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