Free tool

Break-even ROAS calculator

There is no universal "good ROAS". The number that matters is the ROAS where your orders from ads stop losing money — and it depends entirely on your margins.

Calculator

What ROAS do you need?

Contribution margin per order–
Max cost per purchase to break even–
ROAS needed for your target profit–

Your break-even ROAS

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Below this, every order from ads loses money.

Break-even ROAS = order value ÷ contribution margin per order (before ad spend). Use your real costs — benchmarks from other brands don't apply to your margins.

How it works

How break-even ROAS is calculated

Contribution margin per order = order value − product cost − payment and platform fees − shipping and packing − revenue lost to returns and RTO.

Break-even ROAS = order value ÷ contribution margin. At that ROAS, ad spend uses up the entire margin and you make nothing.

Break-even cost per purchase = contribution margin. Pay more than this for an order and you lose money on it.

If you want profit after ads, subtract your target profit from the margin first — that gives the ROAS you should actually aim for. Remember that repeat purchases change the picture: a brand with strong repeat orders can afford a lower first-order ROAS.

Questions

What is a good ROAS for D2C brands in India?

It depends on your margin. A brand with a high contribution margin can be profitable at a ROAS that would lose money for a thin-margin brand. Calculate your own break-even first, then compare.

Should I use platform ROAS or blended ROAS?

Track both. Platform ROAS is what Meta reports; blended ROAS is total revenue ÷ total ad spend. Blended ROAS is harder to fool and better for business decisions.

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