Break-even ROAS and CPA calculator
The return on ad spend you need, and the most you can pay to win a customer, before ads start losing money.
Below the break-even ROAS, or above the break-even CPA, each sale from ads loses money. Estimates only.
How it’s calculated
Contribution per order is the order value minus product cost and every other cost of fulfilling the order, such as fees and shipping. That is the most you can spend on ads to win the order and still break even, the break-even cost per acquisition (CPA).
Break-even ROAS (return on ad spend) is the order value divided by that contribution. If your ads bring in less revenue per dollar than this, each sale from ads loses money.
Worked example
A $50 order with $20 product cost and $10 of fees and shipping leaves $20 per order. You can spend up to $20 in ads per sale, a break-even ROAS of 2.5: every $1 of ads must bring in at least $2.50 of sales.