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Break-even ROAS calculator

Enter what an order sells for and what it costs you: product, shipping and payment fees. You get the profit per order before ads, the most you can pay per purchase (break-even CPA) and the ROAS your ads must beat.

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Break-even ROAS

1.8x

Break-even CPA (max ad cost per order)
$27.28
Profit per order before ads
$27.28
Margin before ads
55.67%
Payment fees per order
$1.72

How it's calculated

Profit before ads
= price − product − shipping − payment fees − other costs
Break-even CPA
= profit before ads
Break-even ROAS
= price ÷ profit before ads

Example

A $49 order with a $14 product, $6 shipping and 2.9% + $0.30 card fees leaves 49 − 14 − 6 − 1.72 = $27.28 before ads. Break-even CPA is $27.28 and break-even ROAS is 49 ÷ 27.28 = 1.80.

Why break-even ROAS matters

It turns your margin into a target your ads dashboard understands. Above it, each order earns money after ads; below it, you pay to sell. Most stores also want a buffer for refunds and returns, so they aim somewhat above break-even.

How to lower it

Raise the order value (bundles, upsells after payment), lower the product or shipping cost, or cut fees. Each dollar kept per order lowers the ROAS your ads need.

FAQ

How do I calculate break-even ROAS?

Divide the selling price by the profit per order before ads. $49 price and $27.28 left before ads: 49 ÷ 27.28 = 1.80.

Is break-even ROAS just 1 ÷ margin?

Yes, when margin means profit before ads ÷ price. A 40% margin gives 2.5.

Should payment fees be included?

Yes. Card fees are taken from every order, so leaving them out makes break-even look lower than it is.

What about refunds and returns?

Add your average refund cost per order to “other costs”, or aim for a ROAS a little above break-even.

Sources

  1. Stripe pricing (default card rate in the example)

Fees change; check the provider's page before relying on a figure. Results are estimates for general information, not financial or tax advice. Brand names belong to their owners; Chekvo isn't affiliated with them.

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