Blackout / Free Tools
Break-Even ROAS Calculator
A nice-looking ROAS can still lose money. Work backward from the costs behind each order before setting your acquisition target.
Start with contribution, not a platform target.
Use average values per order, in USD. Keep revenue and costs on the same basis. Do not count returns or shipping twice.
Exclude sales tax. Include customer-paid shipping only if your matching costs include it.
Include packaging and fixed transaction charges here if applicable.
Expected losses not already deducted from revenue or included in other costs.
Share of revenue to retain before fixed costs. Enter 0 for variable-cost break-even.
How break-even ROAS works
Subtract product cost, shipping and fulfillment, percentage-based transaction fees, and expected return losses from revenue per order. Divide revenue by the contribution left before advertising.
For example, $100 of revenue less $35 of product cost, $10 fulfillment, $3 fees, and $5 expected return cost leaves $47 before ads. Variable-cost break-even ROAS is $100 ÷ $47, or about 2.13×. Reserving another $15 for contribution after ads leaves a $32 ad allowance and a target ROAS of about 3.13×. These are hypothetical inputs, not client results.
Does 3× ROAS mean the business is profitable?
Not necessarily. Margin, returns, transaction fees, attribution, overhead, and acquisition costs matter. This calculator uses only the inputs shown and does not establish overall profit.
Is this the same as an ads platform’s reported ROAS?
No. This is an economic threshold. A platform’s ROAS is an attributed reporting metric that may use a different revenue basis, attribution window, or view-through credit. Reconcile measurement before comparing it with your threshold.
What if the contribution is zero or negative?
There is no positive advertising allowance in this first-order model. Review price, discounts, product mix, fulfillment, and returns before assuming more sales will solve the problem.
Read the ecommerce acquisition and contribution-margin guide, or explore our ecommerce growth approach.
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Useful checks from the source
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Methodology: original Blackout calculations and prioritization rules. Source definitions: Google Search, Google AI impressions, Bing AI Performance, and Lighthouse. Last reviewed September 19, 2026. No ranking, revenue, or advertising-performance guarantee. Privacy policy.