SStoreHunt

ROAS Calculator

Calculate your return on ad spend, then see the break-even ROAS and CPA your margins actually allow. Free, no sign-up.

Campaign
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Your margins (for break-even)
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Leave empty to skip break-even.

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Check your plan's card rate.

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Your ROAS

4x

400% return on ad spend

ACoS

25%

Ad spend ÷ revenue

Break-even ROAS

1.77x

At a 56.5% contribution margin

Break-even CPA

$28.25

Max cost to acquire one order

Target ROAS

2.15x

To keep a 10% profit margin

Estimated profit

$1,575.00

After product, shipping, fees and ads

How to calculate ROAS

ROAS is revenue from ads divided by the cost of those ads:

ROAS = ad revenue ÷ ad spend

$5,000 in revenue from $1,250 of Meta or Google Ads spend is a ROAS of 4x. On its own, that number says nothing about profit. That's what break-even ROAS is for.

How to calculate break-even ROAS

Start from what one order leaves you after the costs that scale with each sale, your contribution per order:

contribution = order value − product cost − shipping − payment fees
break-even ROAS = order value ÷ contribution
break-even CPA = contribution

Worked example

Average order value$50.00
Product cost−$15.00
Shipping−$5.00
Payment fees (2.9% + $0.30)−$1.75
Contribution per order$28.25 (56.5%)
Break-even ROAS50 ÷ 28.25 = 1.77x
Break-even CPA$28.25

Any ROAS above 1.77x makes money on the first order. At the 4x ROAS above, the campaign leaves about $1,575 of profit on $5,000 of revenue.

The ROAS you need for a profit target

Breaking even isn't the goal. To keep a target net margin after ads, subtract it from your contribution margin before inverting:

target ROAS = 1 ÷ (contribution margin − target margin)

With a 56.5% contribution margin and a 10% profit target: 1 ÷ (0.565 − 0.10) = 2.15x. If the target margin is higher than the contribution margin, no ROAS gets you there; the fix is pricing or costs, not ads.

Three ways to improve ROAS

  1. Raise order value. Bundles, upsells and post-purchase offers increase revenue per order while the cost of acquiring that order stays the same.
  2. Improve conversion rate. Trust badges, clear shipping and return policies, and faster pages turn more of the same clicks into orders.
  3. Cut what doesn't convert. Pause ad sets running below your break-even ROAS once they've had enough spend to judge.

Frequently asked questions

What is ROAS?
ROAS (return on ad spend) is the revenue your ads generate divided by what you spent on them. $5,000 of revenue from $1,250 of spend is a ROAS of 4, often written 4x or 400%.
How do you calculate break-even ROAS?
Break-even ROAS = average order value ÷ contribution per order, where contribution is what an order leaves after product cost, shipping and payment fees. Equivalently, it's 1 ÷ your contribution margin. With a 50% margin you break even at 2x.
What is a good ROAS for a Shopify store?
There is no universal number. A ROAS is good when it's above your break-even ROAS, which depends entirely on your margins. A 3x ROAS is profitable at a 50% margin and loses money at a 25% margin. Calculate your break-even first, then set targets above it.
What's the difference between ROAS and ROI?
ROAS compares revenue to ad spend only. ROI compares profit to total investment. A campaign can show a high ROAS and still lose money if product and shipping costs eat the margin, which is why this calculator also estimates profit.
What is break-even CPA?
Break-even CPA is the most you can pay to acquire one order without losing money on it. It equals your contribution per order. If an order leaves $28 after costs, every purchase that costs more than $28 in ads loses money on the first order.
What is ACoS and how does it relate to ROAS?
ACoS (advertising cost of sale) is ad spend divided by revenue, expressed as a percentage. It's the inverse of ROAS: a 4x ROAS is a 25% ACoS. Amazon sellers tend to use ACoS, Meta and Google advertisers tend to use ROAS.

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