ROAS calculator, with break-even ROAS

Break-even ROAS is your average order value divided by what each order keeps before ads. An $80 order at 50% margin with $10 in shipping and fees keeps $30, so it breaks even at 2.67: $2.67 in sales for every $1 of ads. Below that, each order loses money.

2.67Break-even ROAS on an $80 order, 50% margin, $10 fees$80 ÷ $30 kept

2.67Break-even ROASOrder value ÷ profit per order

$30.00Break-even cost per purchase

1,000Orders a month your spend must buy to break even

–MER, from total revenue

$3,333extra profit a month if cost per purchase drops 10% from break-even

How it's calculated

ROAS, CPA and MER, defined.

ROAS

Sales ÷ ad spend

Return on ad spend is the revenue an ad platform credits to ads per $1 spent.

Break-even ROAS

Order value ÷ profit per order

Break-even ROAS is the ROAS where ad cost equals what an order keeps.

Break-even CPA

Order value × margin − fees

Cost per purchase is ad spend ÷ orders; break-even is the most one order can cost.

MER

Total revenue ÷ total ad spend

Marketing efficiency ratio counts every store sale against every ad dollar, on all platforms.

10% lower cost per purchase: same spend buys spend ÷ (0.9 × CPA) orders instead of spend ÷ CPA. Each extra order keeps its profit per order.

Questions

What founders ask about ROAS.

What is a good ROAS for a Shopify store?

One above your break-even ROAS, which depends on margin. With $80 orders and $10 fees, 60% margin breaks even near 2.1 and 30% margin near 5.7.

Should I judge ads on ROAS or MER?

Both. Platform ROAS shows which ads sell. MER shows whether total ad spend pays, because it counts every store sale against every ad dollar.

Why does ROAS in Meta differ from Shopify?

Each platform counts sales inside its own attribution window, so two platforms can claim the same order. Shopify counts each order once, which is why MER uses store revenue.