Enter your numbers below. Get the exact ROAS where your ads stop bleeding money — and the ROAS you need to hit your margin target.
Pre-tax price the customer pays for the product.
Manufacturing or wholesale cost.
Carrier cost.
What you charge the customer.
The % of revenue you want left as profit.
Shopify fee assumed at 2.9% + $0.30 per transaction (standard Shopify Payments).
Below this, every order loses money on ads alone.
To hit your margin goal.
Max ad spend per order before break-even.
Margin available to cover ads & overhead.
Solid contribution margin — you have real room to spend on ads. As long as your blended ROAS stays above your break-even number, you're profitable.
Break-even ROAS (Return On Ad Spend) is the exact ratio of revenue to ad spend at which your store stops making *and* stops losing money. Below it, every paid order is a loss. Above it, you start banking real profit. Most founders run ads with a vague target like "3x ROAS" without ever calculating their actual break-even — and that's how stores quietly bleed margin for months.
Break-even ROAS = Revenue per order / Contribution per order. Contribution per order is what's left after COGS, shipping, payment fees and other variable costs — but *before* ad spend. If a $50 order has $20 of variable cost, contribution is $30, and break-even ROAS is 50 / 30 = 1.67x. Spend $1 on ads, you need to bring back $1.67 in revenue just to break even.
The classic mistake is dividing price by COGS only and calling it a day. That ignores Shopify fees (2.9% + $0.30), shipping you absorb, packaging, and the real CAC math. The result is a break-even number that looks generous but hides the fact that your ads are unprofitable even at "good" ROAS levels. The calculator above forces all of those into the math.
Break-even ROAS keeps you flat. Target ROAS is what you actually want to run at to hit your net margin goal. If you want a 20% net margin, your target ROAS will be meaningfully higher than break-even — because you need to leave room for profit, not just cover costs. The calculator computes both so you can set realistic guardrails for your media buyer or agency.
Anytime your unit economics shift: COGS increase from supplier, new shipping carrier, change in product mix, return rate spikes, or you launch a new SKU at a different price tier. A break-even ROAS calculated 6 months ago is almost certainly wrong today.
Profit Tracker by Ecombone connects to your Shopify store and ad accounts and calculates your real ROAS, contribution margin, and net profit per order, per campaign, per country — automatically.