About this Shopify Break-Even ROAS Calculator
Break-even ROAS tells you how much revenue each ad dollar must generate before an order stops losing money. The key input is contribution margin before ads: revenue left after product, fulfillment, payment, returns, discounts, and other variable costs.
Who this calculator is for
- Shopify operators setting paid acquisition targets.
- Growth marketers comparing CAC targets across products or bundles.
- Founders checking whether discounts or shipping offers still support ad spend.
When to use it
- Set a break-even ROAS target before launching a campaign.
- Estimate maximum CAC for a product, bundle, or average order value.
- Compare how discounts, returns, payment rates, and fulfillment costs change ad efficiency requirements.
Key assumptions
- Selling price is the gross order revenue before discount percent is applied.
- Contribution margin before ads excludes ad spend but includes the entered variable costs and fees.
- Break-even ROAS is selling price divided by contribution margin before ads.
- This calculator does not use live Shopify, payment, or ad platform pricing.
Accuracy and testing
Review formula sources, default test cases, assumptions, unit handling, rounding rules, and changelog for this calculator.
How this calculator works
Inputs explained
Selling price and discount
Gross order value and the average discount rate for the scenario.
Product and fulfillment costs
COGS, shipping, fulfillment, packaging, and other direct order costs before ads.
Payment and platform costs
User-entered payment processor percent, fixed fee, and variable app or platform cost.
Return allowance
Expected return, refund, replacement, or support allowance as a percent of selling price.
Understanding your results
Example scenarios
Paid social target
A $90 product with $42 in product and fulfillment costs can be modeled to find the maximum CAC before a campaign loses money.
Discount comparison
Raise the discount rate to see how quickly contribution margin falls and break-even ROAS rises.
Key Features
- Instant Calculation
- Private & Secure
- Mobile Optimized
Tips & Best Practices
- Use contribution margin before ads, not gross margin, when setting acquisition targets.
- Model new customer and returning customer orders separately when CAC expectations differ.
- Leave room above break-even ROAS for overhead, taxes, refunds, cash-flow timing, and profit.
Glossary of Terms
- ROAS
- Return on ad spend, usually calculated as revenue divided by advertising cost.
- Max CAC
- Maximum customer acquisition cost before the modeled order reaches break-even contribution profit.
- Contribution margin before ads
- Net revenue left after direct variable costs, before advertising spend.