Break-Even ROAS Calculator
Enter your order value and costs, and see the ROAS and CPA you need to cover each order.
Against the benchmark
All DTC brands, 90 days to 28 October 2026, 79 brands, first-purchase ROAS: median 1.53, 75th percentile 1.89, 90th percentile 2.38.
How the calculation works
Contribution per order is order value minus product cost, shipping, payment fees and returns. Break-even ROAS is order value divided by contribution per order. Break-even CPA is the contribution per order itself, because that's the most you can pay for the order and still cover it.
- Take a hypothetical $60 order with $15 of product cost and $6 of shipping.
- Add 3% payment fees ($1.80) and 5% returns ($3.00). Contribution is $34.20, a 57% margin.
- Break-even ROAS is 60 divided by 34.20, which is 1.75. Break-even CPA is $34.20.
Include every cost that moves with an order. Leave out rent, salaries and software, which stay the same whether you sell one order or a thousand. Nothing you type leaves this page. The sums run in your browser.
The worked method, with more on repeat purchase, is in our break-even ROAS guide and contribution margin guide.
Break-even ROAS by contribution margin
| Contribution margin | Break-even ROAS |
|---|---|
| 30% | 3.33 |
| 40% | 2.50 |
| 50% | 2.00 |
| 60% | 1.67 |
| 70% | 1.43 |
What to do next
- Compare your live numbers with the Meta ads benchmark checker.
- See what brands achieve on the ROAS and CPA percentile page.
- Set a spend level with the Meta ad budget calculator.
- If you want someone else running it, see how we run Meta ads for DTC brands.
FAQ
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which an order covers its variable costs and its ad cost, with nothing left over. It equals 1 divided by your contribution margin. At a 50% margin you break even at a ROAS of 2.00. Below that figure each ad-driven order loses money.
How do you calculate break-even ROAS?
Take your average order value, subtract product cost, shipping, payment fees and returns to get contribution per order, then divide order value by contribution per order. With a $60 order and $34.20 of contribution, break-even ROAS is 60 divided by 34.20, which is 1.75.
What is the difference between break-even ROAS and break-even CPA?
They are the same point written two ways. Break-even CPA is the most you can pay for an order, which equals contribution per order. Break-even ROAS is order value divided by that figure. Use CPA when you judge ads in Ads Manager and ROAS when you set a target.
Should I include repeat orders?
Only if you have the numbers. If customers buy more than once in 12 months you can accept a lower ROAS on the first order, because later orders pay back the ad cost. The calculator assumes later orders earn the same contribution and carry no extra ad cost, so treat that line as a ceiling on what you can afford.
Is the median ROAS a good target?
It tells you what is typical, and it can't tell you what is profitable. Across 79 DTC brands in the 90 days to 28 October 2026 the median first-purchase ROAS was 1.53. If your break-even is 2.00, that median loses money for you. Start from your own break-even and use the benchmark as a reality check.
Want a second pair of eyes on the account?
Book a call with the MHI team. We make ads and buy Meta media for DTC brands.