Shopify Break-Even ROAS Calculator accuracy and testing

Formula source

• Net revenue = selling price x (1 - discount rate). Contribution margin before ads = net revenue - product cost - shipping and fulfillment - packaging - payment fee - app/platform cost - return allowance - other variable costs. Break-even ROAS = selling price / contribution margin before ads. Max CAC = contribution margin before ads.

Test cases

Known limitations

• This page documents the checked-in calculator logic and does not certify results for every real-world edge case.
• Use the result as a planning estimate unless the calculator page states a stricter purpose.

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.

Unit handling

• Selling Price accepts values in $.
• Discount Rate accepts values in %.
• Product Cost accepts values in $.
• Shipping & Fulfillment accepts values in $.
• Payment Fee Rate accepts values in %.
• Payment Fixed Fee accepts values in $.
• Packaging Cost accepts values in $.
• App / Platform Cost accepts values in $.
• Return Allowance accepts values in %.
• Other Variable Costs accepts values in $.
• Max CAC is displayed as currency.
• Contribution Margin Before Ads is displayed as a percentage.
• Contribution Margin Dollars is displayed as currency.

Rounding rules

• Number displays use up to 2 decimal places in the calculator UI.
• Currency outputs are displayed with standard US dollar formatting.
• Percent outputs are displayed with two decimal places.
• Input precision follows configured step values where provided.

Version history

Change log