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Break-Even ROAS Calculator

Enter your ecommerce and ad metrics to find your break-even ROAS, target ROAS, and the creative volume you need to stay profitable.

Your numbers

Enter your ecommerce metrics

Fill in the form and click "Calculate ROAS" to see your break-even ROAS, target ROAS, required CTR, and profit per order.

Sustain target ROAS with AI UGC

When fresh creative is the bottleneck to hitting your ROAS, ppl.studio unblocks it.

  • Fresh creative in 60 seconds

    Spin up new AI UGC photos the moment your ROAS dips. No waiting for shoots or creators.

  • Beat CPM inflation with volume

    More creatives = more winners = lower CPM. Test dozens of hooks without blowing the budget.

  • Hit target ROAS at scale

    Creative fatigue is the #1 ROAS killer at scale. Always have fresh angles in the pipeline.

  • Cheaper than stock photos

    $1.99/week unlocks unlimited generations. One stock license costs more than a month of ppl.studio.

  • Your product, every scene

    Upload your product once and it appears naturally in every creative variation.

  • Same face, new angles

    One AI expert across all creatives. Brand consistency + endless creative variety.

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The formula, worked through

A $60 order, 30% product cost, $6 shipping, 3% payment fees; ads at $14 CPM, 1.2% click-through and 2.5% conversion.

MeasureCalculationResult
Gross profit per order$60 − $18 product − $6 shipping − $1.8 fees$34.2
Gross margin$34.2 ÷ $6057%
Break-even ROAS100 ÷ 571.75x
Target ROAS (15% profit)100 ÷ (57 − 15)2.38x
Projected ROAS$60 × 1,000 × 1.2% × 2.5% ÷ $14 CPM1.29x
CTR needed to break evenat 2.5% conversion and $14 CPM1.64%

At 1.29x against a 1.75x break-even, this account loses money on every order: ads cost $46.67 per order against $34.2 of gross profit, so each order loses $12.47. Lifting click-through from 1.2% to 1.64%, usually with a fresher creative, is the cheapest way to break even: conversion and price are harder to move.

Frequently asked questions

Break-even ROAS is the return on ad spend where your ad revenue exactly covers your product costs and ad costs — no profit, no loss. It's calculated as 1 divided by your gross margin. If your gross margin is 50%, your break-even ROAS is 2.0x.

Target ROAS accounts for the profit margin you want to keep. Start with break-even ROAS, then divide by (1 - desired profit margin). For a 20% profit margin on a 50% gross margin product, your target ROAS is roughly 2.5x.

Enter your average order value (AOV), COGS as a percentage of AOV, shipping cost per order, payment processing fees, CPM, CTR, CVR, and desired profit margin. All of these come from your Shopify reports and Meta/Facebook Ads Manager.

Projected ROAS = (AOV × CTR × CVR × 1000) / CPM. Lowering CPM, or raising CTR or CVR by even a fraction of a percent can turn an unprofitable campaign into a winner. The calculator shows the exact CTR you need to break even at your current CPM.

Ad fatigue crushes CTR and raises CPM — which directly kills ROAS. Most creatives burn out within 7 days of heavy spend. To sustain profitable ROAS at scale, you need a steady pipeline of fresh creatives. The calculator estimates how many you need per month based on your spend.

Yes, the break-even ROAS calculator is 100% free with no signup. Use it as often as you want. When you need fresh ad creative to maintain your target ROAS, ppl.studio generates AI UGC photos in under 60 seconds.