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Break-Even ROAS Calculator

Last updated: October 15, 2026

Calculate break-even return on ad spend from order value, gross margin, payment fees, fulfillment costs, returns and advertising budget.

Break-even return on ad spend

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  • Contribution profit per order before ads: —
  • Break-even revenue from entered budget: —
  • Break-even orders from entered budget: —
  • Maximum advertising cost per order: —
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Quick summary: Calculate break-even return on ad spend from order value, gross margin, payment fees, fulfillment costs, returns and advertising budget.

Updated October 14, 2026 • Estimated reading time: 4 minutes
Read the complete guide

What this calculator estimates

Calculate break-even return on ad spend from order value, gross margin, payment fees, fulfillment costs, returns and advertising budget.

How to use it

Enter Average order value ($); Gross margin before fulfillment (%); Payment processing fee (%); Fulfillment cost per order ($); Expected returns and refunds as % of revenue; Advertising budget ($). Select Calculate to update the results.

How the calculation works

Contribution profit subtracts payment fees, fulfillment and expected returns from gross profit per order. Break-even ROAS is revenue divided by contribution profit, or one divided by contribution margin ratio.

Worked example: starting scenario

Example inputs
Average order value ($)120
Gross margin before fulfillment (%)65
Payment processing fee (%)3
Fulfillment cost per order ($)14
Expected returns and refunds as % of revenue6
Advertising budget ($)25000
Example results
Break-even return on ad spend2.26×
Contribution profit per order before ads$53.20
Break-even revenue from entered budget$56,390.98
Break-even orders from entered budget470
Maximum advertising cost per order$53.20

Important limitations

Taxes, overhead, discounts, shipping revenue, repeat purchases, attribution and channel incrementality are not included.