Home Services PortfolioBlogAboutContact
WhatsApp
Free calculator

ROAS Calculator: find your break-even ROAS and real profit

A ROAS of 3 can still lose money. Add your price, product cost and delivery costs. See your ROAS, the ROAS you need to break even, and what is left after ads.

Your numbers
Currency
Labels only, no conversion. Type every amount in the currency you pick.
BDT
Price of one order.
BDT
What one unit costs you.
BDT
Delivery, packaging, payment or COD fee.
BDT
For the same period.
I know my
orders
Orders placed in the period.
BDT
Before returns.
%
COD parcels that never get paid. Use 0 for prepaid only.
Your estimate
Your ROAS--
Break-even ROAS-
Profit or loss (estimate)-
Max cost per purchase-
Your cost per purchase-
Profit per order before ads-
Orders paid for-

Example values are filled in. Results are estimates based on what you type. They leave out fixed costs like rent and salaries.

For sellers in Bangladesh: Cash on Delivery changes the maths. A refused parcel brings in nothing, but you still paid to ship it, and some couriers charge a return fee too. The ad platform still counts that order as a purchase, so your real ROAS is lower than Ads Manager shows. Put your true return rate in the box. Count delivery in other costs unless the customer pays it on top.

How it works

Why ROAS alone can fool you

A ROAS of 3 sounds good. Whether it makes money depends on your margin.

1

Profit per order

Selling price minus product cost minus other costs. This is what one paid order leaves you before ads.

Price − cost − other
2

Adjust for returns

Paid orders earn that margin. A refused COD order earns nothing and costs you the delivery and packaging.

Per order, after returns
3

Break-even ROAS

Selling price divided by profit per order after returns. At this ROAS, ads cost exactly what they earn.

Price ÷ profit per order
4

Compare

If your ROAS is above break-even, the ads make money. Below it, every extra order costs you.

ROAS = revenue ÷ ad spend

How to use the numbers

Set a target above break-even

Do not aim for break-even. Leave room for rent, salaries and slow weeks. Many owners set a target a little above it.

Use max cost per purchase as a ceiling

This is the most you can pay for one order and not lose money. Use it as a cost cap or target CPA in Meta or Google.

Raise the order value

Bundles and add-ons raise the price per order. Your delivery cost often stays the same, so profit per order grows faster.

Cut returns before raising budget

Call or message buyers to confirm COD orders before you ship. Fewer refused parcels lower your break-even ROAS.

Worked example

A shop with a ROAS of 3

An online shop sells a product for BDT 1,500 with Cash on Delivery. These are example numbers, not real shop data.

  1. 1Price BDT 1,500, product cost BDT 600, delivery and packaging BDT 150. Profit per paid order: BDT 750.
  2. 210% of parcels are refused. Per order placed: 0.9 × 750 − 0.1 × 150 = BDT 660.
  3. 3Break-even ROAS: 1,500 ÷ 660 = 2.27. The most you can pay per order is BDT 660.
  4. 4Ads cost BDT 30,000 and bring 60 orders, so BDT 90,000 in sales. ROAS: 3.00. Cost per purchase: BDT 500.
  5. 5Profit: 60 × 660 − 30,000 = BDT 9,600. The ads make money.
  6. 6Now say 30% of parcels are refused. Profit per order drops to BDT 480, break-even ROAS rises to 3.13, and the same ads lose about BDT 1,200.

Same ads, same ROAS. The return rate decided whether the month made money.

Questions

About the roas calculator

What is a good ROAS?
A good ROAS is any ROAS above your break-even ROAS. A shop with thin margins may need 4 or more to profit. A product with a high margin may make money at 2. Use the calculator to find your own line.
How do I calculate break-even ROAS?
Break-even ROAS = selling price ÷ profit per order before ads. If you sell at BDT 1,500 and keep BDT 750 after product and delivery costs, your break-even ROAS is 2. Add your return rate to make it more accurate.
What is the difference between ROAS and profit?
ROAS looks only at revenue for each unit of ad spend. Profit is what is left after product, delivery, returns and ads. Two shops with the same ROAS can have very different profit.
Should I include delivery charges in other costs?
Yes, if you pay them. If the customer pays delivery on top of the price, leave it out. Do include COD fees, packaging and any courier return fee.
How do Cash on Delivery returns change ROAS?
The ad platform counts a purchase when the order is placed. If the parcel is refused, the platform still counts that revenue, but you never get the money. So your real ROAS is lower than the one Ads Manager shows.
What is max cost per purchase?
It is the most you can pay in ads for one order and still break even. It equals your profit per order after returns. Use it as a cost cap or target CPA.
Why is my ROAS in Meta different from my sales records?
Meta counts purchases inside its attribution window and cannot see refused parcels or refunds. Your order records show what was actually paid. Use your own records for profit decisions.

ROAS looks fine but profit does not?

Book a free 15-minute call. I will look at your margins, return rate and ad account, and show you where the money leaks.

WhatsApp Me
On every project

100% client satisfaction

We agree the work in writing. I keep improving it until it meets that standard.

In every contract

Money-back promise

If I don't deliver what we agreed, you get your money back. It is written into every contract.

Call 01782-790018