Calculator

Break-even ROAS Calculator

Break-even ROAS only matters if the order already includes product cost, fulfilment, and fee drag. This calculator starts from contribution before ads, then shows the ROAS threshold needed just to stop losing money on acquisition.

See contribution before ads clearly
Turn order economics into a break-even ROAS target
Calculate the max acquisition cost per order

Calculate break-even ROAS

Start with average order value, then subtract product cost, fulfilment, marketplace or payment fee rate, and any extra variable cost. What remains is the room available for ads and the base for your break-even ROAS.

Quick ROAS scenarios.

Formula

How to think about break-even ROAS

Break-even ROAS = Average order value / Contribution before ads

Contribution before ads is what remains after direct product cost, fulfilment, fee rate, and other variable order costs have already been removed from revenue. That remaining contribution is also the maximum customer acquisition cost you can tolerate before the order stops breaking even.

Why teams overstate ROAS health

They use gross revenue instead of contribution after fees.
They ignore fulfilment and import cost layers.
They compare ad platforms without matching order economics.

Useful next step

Clean up the order economics first, then revisit ROAS. Etsy fees and landed cost are often the missing layers when break-even targets look suspiciously generous.