Calculate Your Break-Even ROAS
What Is Break-Even ROAS?
Break-even ROAS is the minimum ROAS at which your advertising revenue covers your product cost and other variable costs. At this point, your advertising profit is approximately zero before fixed business expenses.
Example
If your selling price is PKR 2,500, product cost is PKR 1,000 and other variable costs are PKR 200:
2,500 ÷ (2,500 − 1,000 − 200) = 1.92x
Your advertising ROAS would need to be about 1.92x just to cover these variable costs.
Why Break-Even ROAS Matters
A ROAS number by itself does not tell you whether an e-commerce campaign is profitable. Your product margin, shipping, payment fees, returns and other variable expenses affect the minimum ROAS you need.
For a broader view, use our Shopify Profit Calculator and compare your advertising performance with your break-even point.
Frequently Asked Questions
It means you need PKR 2 of attributed revenue for every PKR 1 spent on advertising just to cover the variable costs included in the calculation.
No. It changes with your product margin and other variable costs.
This calculator focuses on per-order variable costs. Fixed expenses such as salaries or monthly software subscriptions are not included.