Find the ROAS your ads need before they make money: break-even ROAS, maximum cost per order and the ROAS for your target margin – calculated from your real price, costs, fees, returns and VAT.
In short: Break-even ROAS = revenue per order ÷ contribution before ads, where the contribution before ads (net revenue − all variable costs except advertising) is also the maximum you can pay for one order.
Choose the revenue basis. Does your ad account report revenue including VAT (usual for Google Ads and Meta) or excluding it? Optionally set a target margin.
Enter price and costs. Selling price, purchase price, shipping, marketplace and payment fees and returns – without advertising, that is what the calculator works out.
Compare with your campaign. Enter ad spend and revenue from your ad account to see your current ROAS, the profit per order after ads and whether the campaign earns money.
How it is calculated
Contribution before ads
net revenue − all variable costs except advertising
Max. cost per order (CPA)
contribution before ads
Break-even ROAS
revenue per order ÷ max. CPA
ROAS for target margin m
revenue per order ÷ (contribution before ads − m × net revenue)
Break-even ACoS
1 ÷ break-even ROAS
Revenue per order is the price as your ad account reports it (incl. or excl. VAT). Returns, fees and VAT are already in the contribution – if you are not VAT-registered, the VAT on your ad spend counts as a cost as well.
Common mistakes and how to fix them
Using 1 ÷ gross margin as break-even ROAS
Why it matters: The textbook formula only knows product cost. Shipping, payment and marketplace fees, returns and the VAT in the reported revenue push the real break-even ROAS much higher.
Fix: Calculate the contribution per order before advertising with all variable costs and divide the reported revenue per order by it.
Comparing ROAS on different revenue bases
Why it matters: Google Ads and Meta usually report revenue including VAT. A break-even ROAS calculated on net prices then looks easier to beat than it is.
Fix: Choose the same basis as your ad account (incl. or excl. VAT) – the calculator converts for you.
Ignoring returns
Why it matters: Ad platforms count the sale when the order is placed. Returned orders still cost shipping, fees and the ad click, but the revenue is gone.
Fix: Enter your return rate and cost per return – the break-even ROAS then reflects what really stays.
One target ROAS for every product
Why it matters: Products with low margins need a much higher ROAS than products with high margins. A shop-wide average hides the ads that lose money.
Fix: Calculate the break-even ROAS per product or product group and set campaign targets accordingly.
Treating break-even as the goal
Why it matters: At break-even ROAS the ads pay for themselves, but nothing is left for fixed costs and profit.
Fix: Set a target margin – the calculator shows the ROAS you need to earn it.
Trusting attributed revenue blindly
Why it matters: Ad platforms attribute orders to ads that some customers would have placed anyway (for example after searching your brand name).
Fix: Use the ROAS as an upper estimate and compare periods with and without a campaign before you scale the budget.
Frequently asked questions
What is break-even ROAS?
The return on ad spend at which an order from ads earns exactly nothing. Below it, every order you buy with ads loses money; above it, you make a profit.
How do I calculate break-even ROAS?
Divide the revenue per order (as your ad account reports it) by the contribution per order before advertising. Example: €49.90 revenue and €17.68 contribution give a break-even ROAS of 2.82 – every euro of ad spend has to bring at least €2.82 of revenue.
Why is my break-even ROAS higher than 1 ÷ margin?
Because the simple formula ignores VAT in the reported revenue, returns and payment or marketplace fees. The calculator takes all of them into account, so the result matches what really stays in your account.
What is the difference between ROAS and ACoS?
ROAS is revenue ÷ ad spend (e.g. 4.0), ACoS is ad spend ÷ revenue (e.g. 25 %). Amazon uses ACoS, Google and Meta use ROAS. Break-even ACoS = 1 ÷ break-even ROAS.
Should I enter revenue with or without VAT?
Use the same basis as your ad account. Google Ads and Meta usually report the order value customers pay, i.e. including VAT. If your conversion values are net, switch to “excl. VAT”.
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Sources
Fees, rates and rules change. We check the official sources listed here regularly – the date shows our last check.
Ad platforms count the order value at purchase. The calculation already includes the expected cost of returns, VAT on revenue and your fees – so the break-even ROAS is usually higher than “1 ÷ margin”.