Calculator
Break-even ROAS only matters if the order already includes product cost, fulfilment, and fee drag. This calculator starts from contribution before ads, then shows the ROAS threshold needed just to stop losing money on acquisition.
Start with average order value, then subtract product cost, fulfilment, marketplace or payment fee rate, and any extra variable cost. What remains is the room available for ads and the base for your break-even ROAS.
Quick ROAS scenarios.
Formula
Contribution before ads is what remains after direct product cost, fulfilment, fee rate, and other variable order costs have already been removed from revenue. That remaining contribution is also the maximum customer acquisition cost you can tolerate before the order stops breaking even.
Clean up the order economics first, then revisit ROAS. Etsy fees and landed cost are often the missing layers when break-even targets look suspiciously generous.
This calculator is kept as a contribution-first planning tool. The goal is to keep teams from setting ROAS targets off gross revenue alone when fee drag, fulfilment, and returns are still missing from the order math.
FAQ
No. Break-even ROAS is the floor where the order stops losing money on acquisition. Most teams still need a higher target ROAS to leave real retained margin.
Yes if landed cost is part of the order reality. Break-even ROAS should use every meaningful variable cost that changes contribution before ads.
Use a refund-aware or return-aware model as well. Returns can tighten the true ROAS ceiling even when the base order looks healthy.