E-Commerce ROAS & Break-Even Calculator
Calculate the exact ROAS your store needs to turn a real net profit after accounting for product costs and payment fees.
Enter Your Store Numbers
Adjust your monthly revenue, paid ad budget, gross margin, and gateway fees.
Break-Even ROAS
1.61×
The minimum return required per $1 of ad spend to cover direct COGS and processing fees.
Current Blended ROAS
3.33×
Current blended ROAS
Target 20% Net Margin ROAS
2.38×
For 20% Net Margin
Cash remaining after paying product COGS, transaction fees, and paid ad invoices.
How the Math & Economics Work
Understand the exact equations, managerial accounting rules, and unit economics governing these metrics in modern e-commerce.
Subtract your payment gateway fee percentage from your gross margin percentage, then divide 1 by the result. This reveals the exact multiple needed to avoid losing money.
60.0% gross margin
2.9% transaction fee
57.1% net margin pool
Any campaign ROAS above 1.75× generates positive net contribution
Ad Manager ROAS vs. Store-Matched ROAS
If your ad manager reports 2.8× ROAS but store-matched order reconciliation reveals 1.6×, your campaign is operating below the 1.75× break-even line. Last-click order matching prevents scaling unprofitable ad spend.
Frequently Asked Questions
Reconcile Ad Spend with Verified Checkout Orders
See real return on spend, campaign pacing, and decision verdicts (Scale / Review / Pause) inside Margain Marketing Pulse.
Related Guides & Playbooks
Deep-dive operational frameworks explaining the unit economics, cash cycles, and marketing attribution behind this calculator.
Scaling from $10k to $100k/mo: When and How to Shift from ROAS to MER
Tactical ROAS works for testing, but breaks at scale. Learn why high-growth e-commerce brands shift their primary acquisition KPI to Blended MER as ad spend grows.
ROAS vs. MER: Why You Need Both to Scale E-Commerce
Understand the difference between platform-attributed ROAS and Marketing Efficiency Ratio (MER), and how the two metrics provide different views of e-commerce marketing performance.
Shopify Profit Tracking Apps & Attribution Alternatives: The Merchant's Evaluation Guide
Compare Shopify profit tracking apps and attribution platforms. Discover how to calculate true net contribution, eliminate $300-$1,500/mo software bloat, and reconcile ad spend.
Understanding True ROAS vs. Ad Manager ROAS: A Merchant's Guide
Why ad platform ROAS differs from bank deposits. Learn how attribution windows, gateway fees, COGS, and refunds impact actual marketing return.
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