Breakeven ROAS Calculator (BEROAS), free break-even and target ROAS tool

    Also known as: BEROAS calculator, break-even ROAS calculator, breakeven return on ad spend calculator, target ROAS calculator, free ROAS calculator for ecommerce, dropshipping ROAS calculator, calculator ROAS, calculateur BEROAS, ROAS berekenen, doel ROAS berekenen. Built by Md Morshed Parvej Patwary, senior performance marketing strategist based in Dhaka, Bangladesh.

    ROAS berekenen: gratis BEROAS calculator voor webshops

    Wil je je ROAS berekenen of je doel ROASen break-even ROAS bepalen voor je Meta Ads, Google Ads of Shopify dropshipping campagne? Deze gratis BEROAS calculator berekent direct je break-even ROAS, target ROAS en winstmarge op basis van je gemiddelde orderwaarde (AOV), productkosten (COGS), verzendkosten en advertentiebudget. Formule: Breakeven ROAS = 1 ÷ brutomarge %. Ideaal voor Nederlandse en Belgische ecommerce ondernemers die willen weten vanaf welke ROAS hun advertenties winstgevend zijn.

    Calculateur BEROAS: calculer votre ROAS cible

    Ce calculateur BEROAS gratuit vous permet de calculer le ROAS d'équilibre et le ROAS cible de vos campagnes Meta Ads, Google Ads ou Shopify. Entrez votre panier moyen (AOV), votre coût produit (COGS), vos frais de livraison et votre budget publicitaire pour obtenir votre seuil de rentabilité.

    What is BEROAS and how do I calculate it?

    BEROAS (Break-Even ROAS) is the minimum Return on Ad Spend your campaigns need to cover product cost, shipping and the ad spend itself, before you start making profit. The formula is BEROAS = 1 ÷ Gross Margin %. For example, a product with a 40% gross margin has a BEROAS of 2.5x, meaning your ads must generate at least 2.5x their spend to break even. Any ROAS above that is profit.

    Free ROAS calculator for ecommerce and dropshipping

    Free online ROAS calculator with no sign-up. Works for Shopify dropshipping, D2C brands and Meta Ads or Google Ads campaigns. Enter AOV, COGS, shipping and ad spend to see breakeven ROAS, target ROAS and gross margin in USD or BDT.

    Target ROAS calculator: what ROAS should I aim for?

    Target ROAS is the ROAS your ads need to hit to keep a set net profit after covering COGS, shipping and ad spend. Most ecommerce brands target 20 to 30% above breakeven ROAS. This target ROAS calculator returns the exact number to plug into Meta Advantage+ Shopping or Google Performance Max tROAS bidding.

    ●  Tool № 01Unit economics · Real-time

    Breakeven ROAS.

    Type your numbers. Watch your profitability targets update in real time.

    Currency

    01. Definition

    A breakeven ROAS is the minimum return your ads must produce to cover product cost, shipping and the ad spend itself, before you lose money on a sale.

    The formula is Breakeven ROAS = 1 ÷ Gross Margin %. For an $80 order with $25 COGS and $8 shipping, gross margin is 58.75%, so breakeven ROAS is 1.70x. To keep 20% net profit, aim for a target ROAS of 2.58x.

    01b. The formula

    Breakeven ROAS = 1Gross Margin %
    Gross Margin % = AOV − COGS − ShippingAOV
    Target ROAS (20% net) = 1Gross Margin % − 20%

    Two rules the formula makes obvious. One, breakeven ROAS is a property of your unit economics, not your ad account. Two, if gross margin sits under 20% there is no target ROAS that keeps 20% net, the denominator goes negative. That is a pricing or COGS problem, not a Meta problem.

    01c. BEROAS vs ROAS

    Same word, different job.

    Most Meta Ads dashboards show ROAS as a single number, so most brands treat it as one metric. It is three. Read them side by side before you touch a budget.

     ROASBreakeven ROAS (BEROAS)Target ROAS (tROAS)
    What it answersHow much revenue did the ads return?At which ROAS do you stop losing money?Which ROAS keeps a chosen net profit?
    FormulaRevenue ÷ Ad Spend1 ÷ Gross Margin %1 ÷ (Gross Margin % − Net %)
    SourceMeta / Google reportsYour P&L (AOV, COGS, shipping)Your P&L + profit goal
    Changes whenCreatives, audiences, bids movePricing, supplier costs, shipping changeProfit target or margin changes
    Example (AOV $80, GM 58.75%)e.g. 3.20x1.70x2.58x
    Use it toReport performanceSet the kill line for unprofitable adsFeed Advantage+ / Performance Max tROAS bidding

    Short version. ROAS is a scoreboard. BEROAS is a floor. Target ROAS is what you tell the algorithm to chase.

    Preset scenarios

    02,

    Your numbers

    03,

    Live result

    Healthy, scalable

    Gross Margin

    58.8%

    Margin per order · $47

    Breakeven ROAS

    1.70x

    Below this, each ad dollar loses money.

    Target ROAS · 20% net

    2.58x

    Keeps 20¢ of every revenue dollar.

    Revenue @ target
    $25,806.45
    Net profit
    $5,161.29
    Orders needed
    323

    04. Personalised review

    Want a personal read on these numbers?

    Send me your inputs and I'll come back within 4 hours with a short audit of where the leak is most likely to be.

    Your inputs travel with the message.

    05. How to calculate ROAS

    ROAS. Return on Ad Spend, is revenue divided by cost of ads. ROAS = Revenue ÷ Ad Spend. Spend $1,000 on Meta Ads, earn $4,000 back, that's a 4x ROAS.

    Most e-commerce brands chase a "3x to 5x ROAS" number by habit. But the ROAS that actually matters is your own breakeven, which depends on gross margin, not benchmarks. The calculator above gives you that exact number.

    06. Understanding it

    Common questions.

    1. 01

      What is BEROAS?

      BEROAS (Break-Even ROAS) is another name for breakeven ROAS. It is the minimum Return on Ad Spend at which an order covers COGS, shipping, and ad spend without losing money. If your Meta or Google Ads ROAS falls below your BEROAS, every sale is unprofitable.

    2. 02

      How do I calculate BEROAS / breakeven ROAS?

      Divide 1 by your gross margin percentage. Gross margin = (AOV − COGS − shipping) ÷ AOV. Example: AOV $80, COGS $25, shipping $8 → gross margin 58.75% → BEROAS = 1 ÷ 0.5875 = 1.70x. Use the calculator above to skip the math.

    3. 03

      Is this a free ROAS calculator?

      Yes. This free ROAS calculator has no sign-up, no email wall and no export limits. Enter AOV, COGS, shipping and ad spend in USD or BDT to get breakeven ROAS, target ROAS and gross margin instantly.

    4. 04

      How is target ROAS different from breakeven ROAS?

      Breakeven ROAS covers costs at zero profit. Target ROAS builds a profit buffer on top. This target ROAS calculator uses a 20% net-profit model by default, so if breakeven ROAS is 2.0x, target ROAS is roughly 2.5x.

    5. 05

      Does this ROAS calculator work for Shopify dropshipping?

      Yes. Dropshipping stores usually run thin margins (25 to 40%), which pushes breakeven ROAS to 2.5x to 4.0x. Enter your supplier COGS, shipping and AOV to see whether your Meta or TikTok Ads can realistically hit that target.

    6. 06

      Can I calculate ROAS for Meta Ads and Google Ads campaigns?

      Yes. ROAS = revenue ÷ ad spend, and it applies to Meta Ads, Google Ads, TikTok Ads or any paid channel. Use this calculator to set the ROAS target you should tell Advantage+ Shopping or Performance Max to optimize toward.

    7. 07

      What is breakeven ROAS?

      Breakeven ROAS is the minimum return you need on your ad spend to cover the cost of the product itself (COGS), shipping, and the ad spend, without losing money. If your actual ROAS falls below this number, every sale is unprofitable.

    8. 08

      How do I lower my breakeven ROAS?

      Raise your AOV through bundles or upsells, reduce COGS by negotiating with suppliers, cut shipping costs by switching providers or building it into the price, or increase prices if your brand positioning supports it.

    9. 09

      What is a good target ROAS?

      A healthy target ROAS is usually 20 to 30% above breakeven. In the calculator above we model a 20% net-profit buffer. If your breakeven is 2.5x, your target should be around 3.0x to keep meaningful profit after ad spend.

    10. 010

      Why does my breakeven ROAS look so high?

      Thin margins (low AOV, high COGS, or high shipping) push breakeven ROAS above 4x, which is very hard to sustain on Meta or Google Ads. This usually signals a pricing or unit-economics problem, not an ad-performance problem.

    11. 011

      Is ROAS the only metric I should track?

      No. ROAS tells you if your ads are profitable, but not why. Pair it with MER (Marketing Efficiency Ratio), CAC payback period, and contribution margin to get the full picture of your marketing health.

    07. Worked examples

    Same formula, very different outcomes.

    Three real scenarios most Bangladesh and DTC brands run into.

    ScenarioAOVCOGSShipMarginBreakevenTarget
    Fashion DTC

    Healthy margin, easy to scale profitably on Meta.

    		$80$25$859%1.70x2.56x
    Single-SKU Gadget

    Target is unrealistic, needs AOV lift or bundles.

    		$35$18$534%2.92x7.14x
    Subscription Box

    Strong unit economics, aggressive scaling works.

    		$120$30$1067%1.50x2.13x

    08. Industry benchmarks

    Use as a sanity check, not a target.

    Indicative ranges from campaigns run across Bangladesh, South Asia and global D2C. Your real target is the one the calculator above gives you.

    IndustryHealthy ROASTypical Gross Margin
    Fashion & Apparel D2C3.0x to 5.0x55% to 70%
    Beauty & Skincare3.5x to 6.0x60% to 80%
    Consumer Electronics5.0x to 8.0x20% to 35%
    Food & Subscription Boxes2.0x to 3.5x55% to 70%
    Home & Lifestyle3.5x to 5.5x45% to 60%
    Local Bangladesh D2C3.0x to 4.5x40% to 60%

    09. More free tools

    Related calculators for the rest of the funnel.

    10. Next

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