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Break-Even ROAS Calculator

Find the minimum Return on Ad Spend your store needs to cover product and other variable costs before your advertising becomes profitable.

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.

Break-Even ROAS = Selling Price ÷ (Selling Price − Product Cost − Other Variable Costs)

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

What does a 2x break-even ROAS mean?

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.

Is break-even ROAS the same for every store?

No. It changes with your product margin and other variable costs.

Should I include fixed costs?

This calculator focuses on per-order variable costs. Fixed expenses such as salaries or monthly software subscriptions are not included.