FREE TOOL · NO SIGN-UP

ROAS and Break-Even ROAS Calculator

Work out your return on ad spend, the ROAS you need just to break even, and the most you can pay in ads for each sale. Pick your currency, type your numbers, and the results update as you go.

₹
₹

Sales your ads generated in the same period, after refunds if you can.

Enter your ad spend and revenue to see your ROAS.

What is ROAS?

ROAS, or return on ad spend, tells you how much revenue your ads bring back for every unit of currency you spend on them. It is the headline number in Meta Ads Manager and the quickest way to compare campaigns, but it says nothing about profit on its own.

ROAS = Revenue from ads ÷ Ad spend

Spend ₹50,000 and make ₹1,50,000 in sales from those ads, and your ROAS is 3.0x. Whether 3.0x is good depends entirely on your margins, which is where break-even ROAS comes in.

What is break-even ROAS?

Break-even ROAS is the ROAS at which ad spend uses up all of your margin, so you neither make nor lose money on each sale. Anything above it is profit; anything below it is a loss, however good the ROAS looks.

Break-even ROAS = Selling price ÷ (Selling price − COGS − Other variable costs)

The same margin also gives you your break-even cost per purchase: the most you can pay Meta to win one sale.

Break-even cost per purchase = Selling price − COGS − Other variable costs

If you want to keep a set profit margin after ads, take that profit out of the margin first:

Target ROAS = Selling price ÷ (Margin per order − Selling price × Target margin %)

Illustrative worked example

These figures are illustrative, made up to show how the formulas work, and are not taken from any real account. Imagine a product that sells at ₹2,000, where each order costs ₹700 in product and ₹300 in shipping, payment fees and packaging.

  • Margin per order: ₹2,000 − ₹700 − ₹300 = ₹1,000.00 (50% of the price)
  • Break-even ROAS: 2,000 ÷ 1,000 = 2.0x
  • Break-even cost per purchase: ₹1,000.00
  • To keep a 20% profit margin: 2,000 ÷ (1,000 − 400) = 3.33x target ROAS, or a target cost per purchase of ₹600.00

Now suppose a campaign for this product spends ₹50,000 and the ads bring in ₹1,40,000, a ROAS of 2.8x. That is comfortably above break-even, so the campaign is profitable, but it is short of the 3.33x needed for a 20% margin. The fix is not necessarily more budget: it is better creative, a higher order value or a stronger landing page.

How to improve ROAS on Meta Ads

  • Raise the order value. Bundles, upsells and free-shipping thresholds lift revenue per sale without touching ad spend, and they lower your break-even ROAS at the same time.
  • Fix tracking first. Meta optimises on the purchases it can see. A properly set up Pixel and Conversions API means the algorithm learns from real sales rather than guesses.
  • Test creative, not just audiences. On Meta, the ad itself does most of the targeting. A steady stream of new hooks and formats is usually the biggest ROAS lever.
  • Follow up fast. For high-consideration purchases, an automatic WhatsApp follow-up turns more of the clicks you already paid for into sales.
  • Judge budgets on margin. Scale campaigns that sit above your target ROAS and cut or rework those below break-even. Read more on how to set a Meta Ads budget.

Want someone to do this for your account? See how Meta Ads management works, or browse the case studies for real budgets and ROAS.

FAQ

ROAS Questions, Answered

What is a good ROAS?
+

There is no single good ROAS. A good ROAS is one that sits comfortably above your break-even ROAS, and break-even depends on your margins. A product with a 70% margin breaks even at about 1.43x, while one with a 25% margin needs 4x just to cover costs, so work out break-even first and judge every campaign against it.

How do you calculate break-even ROAS?
+

Divide your selling price by your margin per order, where margin is the price minus cost of goods and other variable costs such as shipping, payment fees and packaging. If you sell at ₹2,000 and keep ₹1,000 after those costs, your break-even ROAS is 2,000 ÷ 1,000 = 2.0x.

What is the difference between ROAS and ROI?
+

ROAS measures the revenue returned for each unit of ad spend and ignores every other cost. ROI measures profit against your total investment, including product costs, fees and overheads. A campaign can show a healthy ROAS and still lose money if your margins are thin, which is why break-even ROAS matters.

Why is my Meta Ads Manager ROAS different from my actual revenue?
+

Ads Manager reports the purchase value Meta attributes to your ads inside its attribution window, by default 7-day click and 1-day view. Your store counts every sale, including ones Meta could not track because of browser privacy settings and ones the ads did not cause. Compare both, and set budgets on the revenue your own store or CRM confirms.

Should ROAS include returns and refunds?
+

Yes, if you want an honest number. Refunded revenue was never really earned, so subtract returns and cancellations before dividing by ad spend. In categories with high return rates, such as fashion, this one adjustment can change whether a campaign is profitable at all.

Is this ROAS calculator free?
+

Yes. It is free with no sign-up, and every figure is calculated in your browser as you type. It asks for no name, email or other personal details, and the numbers you enter are not stored or sent anywhere.

Want this done for your ad account?

Bring your numbers to a free 30-minute strategy call. I will look at your current ROAS, your break-even point and where the budget is leaking.

Book a free strategy call