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Break-Even ROAS Calculator (USD & PKR)

Find the minimum return on ad spend your campaigns need to stop losing money — including shipping, payment fees and returns that simple calculators ignore.

Apps, packaging inserts, COD charges…
Your break-even ROAS
—
Profit per order before ads—
Max cost per purchase (break-even CPA)—
Target ROAS for your margin—
Target cost per purchase—
Enter your numbers to see the result.

What is break-even ROAS?

ROAS (return on ad spend) is the revenue your ads generate divided by what you spent on them. A ROAS of 3x means every 1 unit of ad spend brought back 3 units of revenue. Break-even ROAS is the point where the profit from those sales exactly covers your ad spend — below it you lose money on every sale, above it you make money.

The break-even ROAS formula

The simplest version is 1 ÷ profit margin. With a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.5x.

But the "margin" must include every cost of fulfilling an order — not just the product cost. This calculator uses:

  • Revenue kept = price × (1 − returns %)
  • Costs per order = product cost + shipping + other costs + payment/platform fees
  • Profit per order before ads = revenue kept − costs per order
  • Break-even ROAS = price ÷ profit per order before ads

The profit per order is also your break-even CPA — the most you can pay in ads for one purchase without losing money.

Break-even ROAS vs target ROAS

Break-even only keeps you at zero. To actually make money, set a target ROAS that leaves the profit margin you want after ad costs. Enter your desired margin above and the calculator shows the ROAS and cost per purchase your campaigns need to hit.

How to lower your break-even ROAS

  • Increase average order value with bundles, upsells and free-shipping thresholds.
  • Negotiate product and courier costs as volume grows.
  • Reduce returns with clearer product pages and size guides.
  • Bring buyers back with email and WhatsApp — repeat sales have no ad cost.

Running Meta ads in Pakistan? Read our guide to Facebook ads costs in Pakistan.

FAQ

What is a good ROAS?

There is no universal number — a good ROAS is one comfortably above your break-even ROAS. A business with 60% margins can be very profitable at 2x, while a 20% margin business may need 5x or more.

Is break-even ROAS the same as 1 divided by margin?

Yes, if your margin includes every cost of an order — product, shipping, fees and returns. Using only product cost understates the ROAS you need.

Does ROAS include repeat purchases?

Platform ROAS usually measures only the first purchase. If customers buy again, their lifetime value can justify a lower first-order ROAS.