Break-even ROAS Calculator
Find the ad return needed to cover variable costs on one sale.
Formula and assumptions
Threshold · Total variable cost = Delivery cost + Shipping + Transaction fee + Other variable costs. Contribution profit = Selling price − Delivery cost − Shipping − Transaction fee − Other variable costs. Contribution margin = (Selling price − Delivery cost − Shipping − Transaction fee − Other variable costs) ÷ Selling price × 100. Maximum affordable ad cost = max(0,Selling price − Delivery cost − Shipping − Transaction fee − Other variable costs). Break-even ROAS = ratio(Selling price,Selling price − Delivery cost − Shipping − Transaction fee − Other variable costs).
Overhead, tax and refunds are excluded unless included in the costs. A zero or negative contribution cannot fund advertising.
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Further reading: Digital Marketing Services: Elevating Your Brand and Driving Sales in the Online Era
Related tools: Marketing ROI Calculator · ROAS Calculator
Page editor: Usman Arshad · Last edited: November 3, 2026
How to use this tool
Choose the relevant mode, enter Selling price and complete the labelled fields. Use Calculate to review your result.
Worked example
Selling price = 100, Delivery cost = 25, Shipping = 10, Transaction fee = 3, Other variable costs = 2.
Total variable cost = 40.00 currency units · Contribution profit = 60.00 currency units · Contribution margin = 60.00% · Maximum affordable ad cost = 60.00 currency units · Break-even ROAS = 1.67×.
These example values are illustrative.
Interpreting the result
The contribution per order is the most you could spend acquiring that order before overhead. If shipping or returns increase, rerun the model before scaling spend.
Assumptions and limitations
Overhead, tax and refunds are excluded unless included in the costs. A zero or negative contribution cannot fund advertising.
Why might the threshold be missing?
When variable costs consume the entire selling price, no positive advertising spend breaks even on a single sale.