How the calculator works
Revenue is what the customer pays you, excluding VAT: the order value plus any shipping they pay. That’s close to the conversion value most ad platforms report. From it, the calculator takes off product cost, what the carrier charges, payment fees and other per-order costs. What’s left is what one order leaves before ads.
Break-even ROAS = revenue ÷ what’s left before adsWith the example above: $64.95 ÷ $36.07 = 1.80×
At that ROAS, your ads cost exactly what the order leaves, so you break even. Every point above it is profit before running costs; every point below it is money the ads take out of your store.
Why one number isn’t the whole answer
- Products differ. A mug with a 70% margin can take far more ad spend than a heavy planter with expensive shipping. A store-wide break-even hides the products that lose money.
- Platform ROAS isn’t your real return. Meta and Google each count the sales they think they drove, and together they often count more than you sold. Your total revenue divided by your total ad spend (MER) is the steadier number.
- Refunds and running costs come later. Refunds lower revenue after the fact, and rent, apps and salaries still need paying from what’s left.