Break-even ROAS calculator
Find the return on ad spend you need before an ad makes money, then check what your current ads actually earn. Nothing you type leaves your browser.
How it works
Kept per order = order value − product − shipping − fees − other costs. Break-even ROAS = order value ÷ kept per order. Break-even cost per purchase = kept per order. Contribution after ad spend = ad revenue × margin before ads − ad spend. It is what those sales leave you before fixed overheads (rent, wages, software), tax and any per-order cost you left out, so it is not your final profit. A revenue of 0 is a real answer: ROAS 0 and the whole spend lost. Above break-even, each sale adds to contribution. Below it, each sale loses money, however good the ROAS looks next to someone else's.
This uses one average order. If customers come back and buy again, you may be able to accept a lower first-order ROAS, but only if you know your repeat rate. The Meta ads ROAS guide walks through the maths, and the glossary defines each term.
Questions people ask
What is a good ROAS for Meta ads?
There isn't one number. A good ROAS is one above your own break-even ROAS, which depends on your margins. A business keeping 60 cents of every sales dollar before ads breaks even near 1.7. One keeping 25 cents needs 4.
How do you calculate break-even ROAS?
Work out what you keep from an average order after product, shipping, fees and other per-order costs, before ads. Divide the order value by that amount. That is the same as 1 divided by your margin before ad costs.
Is ROAS the same as profit?
No. ROAS only compares ad revenue with ad spend. Two campaigns with the same ROAS can make very different profit if their margins differ. That is why this calculator works out contribution after ads too.
Should I trust Meta's reported ROAS?
Use it, but check it. Compare it with sales in your store over the same period, because platforms can count the same sale differently. The ROAS guide explains how.
Below break-even and not sure why?
The Growth Diagnostic checks your offer, ads, site and follow-up, then gives you a written 90-day plan. Planning spend? Try the ad budget calculator.