Free tool · Break-even ROAS
Break-even ROAS calculator.
Enter one typical order. You get the ROAS your ads must report before that order makes money, and the most you can pay for it. COD returns and shipping are counted.
Break-even ROAS
1.96×
Below this, every order the ads bring in loses money.
Most you can pay per order
₹764
Your break-even cost per purchase.
ROAS to keep 10% profit
2.44×
Left per order before ads
₹764 (50.9%)
How it works
The working.
For each order placed, the share that is kept pays the product, the payment fee and its own profit. Every order is shipped, and every returned order costs the return on top. What is left is the money the ad can spend.
Break-even ROAS is the order value divided by that money. The most you can pay per order is the money itself. To keep a profit, take that profit out first and divide again.
Check the result against the orders in your store, not only the ad platform’s report. The platform counts orders that later come back.
Want us to check the real numbers?
We audit the ad account against your store’s orders and tell you which number is off. For D2C brands spending ₹5L or more a month on ads.
Questions
Anything else, ask on the call. We answer it there.
What is break-even ROAS?Open
The return on ad spend at which an order covers its own costs and the ad that brought it in, with nothing left over. Below it, more sales means more loss.
How do I calculate break-even ROAS?Open
Divide the order value by what is left of it after product cost, shipping, payment fees and returns. If a ₹1,500 order leaves ₹750, break-even ROAS is 2.
Why does this calculator count returns?Open
In India a large share of COD orders come back. A returned order earns nothing but still costs the shipping both ways, while Meta and Google count it as a sale. Leaving returns out makes the break-even number look lower than it is.
Should I include GST?Open
No. Use the order value before GST, because the GST is not yours to keep. Ad platforms usually report value including tax, so their ROAS reads slightly higher than this.
What is a good ROAS for an Indian D2C brand?Open
One clearly above your own break-even, so the number depends on your margins and returns. A brand with high margins can grow at a ROAS of 2. A brand with thin margins and many COD returns may need 4 or more.
More free tools