Free calculator
Break-Even ROAS Calculator for Shopify Stores
Enter what an average order brings in and what it costs you. The calculator shows your break-even ROAS — the return on ad spend where a campaign stops losing money — and the higher ROAS that hits your profit target.
Break-even ROAS
1.98
Your contribution margin is 50.4%, so every $1 of ad spend needs $2 of revenue just to break even.
ROAS for a 15% profit margin
2.82
Campaigns above this ROAS hit your profit target; between this and break-even they grow revenue but not profit.
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The formula
Break-even ROAS = 1 ÷ contribution margin. If an order keeps 40% after product, shipping and fees, every $1 of ads must return $2.50 of revenue just to break even. ROAS targets copied from other stores are meaningless because margins differ.
Using it on real campaigns
A campaign between break-even and your target ROAS grows revenue but not profit — sometimes worth it for new-customer acquisition, never for the whole account. Judge prospecting and retargeting against the same break-even but different targets.
Full walkthrough: Why your product page gets traffic but no sales.
Frequently asked questions
What is a good ROAS for a Shopify store?
There's no universal number — it depends entirely on your margin. A store keeping 60% of each order breaks even at 1.67 ROAS; a store keeping 25% needs 4.0 just to not lose money. Work out your own break-even first, then set targets above it.
What's the difference between ROAS and break-even ROAS?
ROAS is what a campaign actually returned: revenue ÷ ad spend. Break-even ROAS is the threshold your economics set: the return needed for the ad spend to cost you nothing. Campaigns above it make money; campaigns below it lose money no matter how good the ROAS looks in the dashboard.
Should I include shipping and payment fees in the calculation?
Yes — every cost that scales with the order. Product cost, shipping and fulfillment you pay, payment processing, and packaging all come out of the revenue an ad generates. Leaving them out makes break-even look lower than it is, which is how profitable-looking campaigns quietly lose money.
How is break-even ROAS related to ACoS?
They're reciprocals: ACoS (advertising cost of sales) = 1 ÷ ROAS. A break-even ROAS of 2.5 is a break-even ACoS of 40%. Amazon sellers tend to think in ACoS, Shopify advertisers in ROAS — same economics.