What break-even ROAS means
ROAS, return on ad spend, is revenue divided by advertising spend. A ROAS of 3 means every 1 spent on ads brought back 3 in revenue. It says nothing on its own about profit: a ROAS of 3 is a healthy result for a product with an 80% margin and a loss for a product with a 25% margin. Break-even ROAS is the ROAS at which the profit an order leaves before advertising exactly pays for the advertising. Above it, ads add profit; below it, every ad-driven order loses money.
The calculator works it out from your own order value and variable costs, so the target you set for your campaigns comes from your margins rather than from a rule of thumb.
How it is calculated
Start with the average order value. Take off what an order costs to fulfil: the product cost, shipping and fulfilment, payment fees and any other variable cost per order. What is left is the profit before ads. That is also the most you can pay to win one purchase without losing money, the break-even cost per purchase (often called break-even CPA).
Break-even ROAS = order value / profit before ads. If the order value is 80 and the profit before ads is 32, break-even ROAS is 2.5: at a ROAS of 2.5 the ads cost 32 per order and the order makes nothing.
If you add a target profit margin, the calculator also shows the ROAS needed to keep that margin after ads. A 10% target on an 80 order needs 8 of profit left after advertising, so ads may cost at most 24 per order, which is a ROAS of 3.33.
How to fill it in
Like any ecommerce ROAS calculator, it is only as good as the costs you give it, so use real figures from recent orders.
- Average order value: revenue divided by orders, before tax.
- Product cost per order: the landed cost of the items in an average order.
- Shipping and payment fees: what you pay per order, after anything the customer pays.
- Other variable costs: packaging, inserts, app fees per order, an average refund cost.
- Target profit margin: optional, the share of the order you want to keep after ads.
Reading the result
Compare the break-even ROAS with what your ad platforms report. Keep in mind that platform ROAS is based on the platform's own attribution, which can count the same order in more than one place or credit orders that would have happened anyway. A campaign that looks just above break-even in an ads dashboard can be below it in reality. It is also an average: a first purchase that turns into repeat orders can justify a ROAS below break-even, which is what the CAC Calculator helps you think through.
Limitations
The calculator uses one average order. It does not see your product mix, discounts, refunds by channel or fixed costs, and it does not read any ad account. Everything runs in your browser and nothing you type is sent or stored.
See the real number
ORVX reads your ad spend from Meta and Google and sets it against the profit of the orders it actually bought, so you can see whether a campaign is above or below break-even with your real costs, not with an average.
Worked examples
Illustrative figures, not benchmarks.
A standard order
An 80 order with 28 product cost, 7 shipping, 2.9% card fees and 2 of other costs leaves 40.68 before ads. Break-even ROAS is 1.97x.
An order with 20% VAT
A 120 order includes 20% VAT, so 100 is yours. With the same costs, 59.52 is left before ads and break-even ROAS is 2.02x. A plain margin calculator would give a lower target, because it counts the tax as revenue.
Cash on delivery
An 800 order, 280 product, 60 shipping, with 20% of orders refused at the door. You pay shipping on every order but earn on four in five, so 356 is left per order placed and break-even ROAS is 2.25x.
How VAT and GST change the answer
Same order everywhere: order value 100 with tax included, product 35, shipping 8, card fee 2.9%. Ad platforms report the order value with tax, so the ROAS you need rises with the rate.
| Country | Standard rate | Result |
|---|---|---|
| Prices without tax | 0% | 1.85x |
| United Kingdom | 20% VAT | 2.67x |
| Australia | 10% GST | 2.22x |
| United Arab Emirates | 5% VAT | 2.03x |
| New Zealand | 15% GST | 2.44x |
| Singapore | 9% GST | 2.18x |
| Canada (Ontario) | 13% HST (Ontario) | 2.35x |
Rates as checked on 26 October 2026. Check the official page before you rely on one.
Common mistakes
- Comparing a target built on net revenue with a platform ROAS that includes tax.
- Ignoring refused cash-on-delivery orders, which are counted as sales by ad platforms.
- Using one blended margin when products differ a lot.
- Treating break-even as a goal: it is the point where ads earn nothing.
Questions
Is break-even the same as minimum ROAS?
Yes. It is the minimum ROAS at which ads stop losing money on an order, before any profit.
Does this replace my ad platform's ROAS?
No. It gives you the target. Your platform reports the result, using its own attribution.
What refusal rate should I enter?
Your own, from recent orders: shipped orders that were not delivered and paid, divided by all orders shipped.