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.
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.
Why ROAS alone can fool you
A ROAS of 3 sounds good. Whether it makes money depends on your margin.
Profit per order
Selling price minus product cost minus other costs. This is what one paid order leaves you before ads.
Price − cost − otherAdjust for returns
Paid orders earn that margin. A refused COD order earns nothing and costs you the delivery and packaging.
Per order, after returnsBreak-even ROAS
Selling price divided by profit per order after returns. At this ROAS, ads cost exactly what they earn.
Price ÷ profit per orderCompare
If your ROAS is above break-even, the ads make money. Below it, every extra order costs you.
ROAS = revenue ÷ ad spendHow 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.
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.
- 1Price BDT 1,500, product cost BDT 600, delivery and packaging BDT 150. Profit per paid order: BDT 750.
- 210% of parcels are refused. Per order placed: 0.9 × 750 − 0.1 × 150 = BDT 660.
- 3Break-even ROAS: 1,500 ÷ 660 = 2.27. The most you can pay per order is BDT 660.
- 4Ads cost BDT 30,000 and bring 60 orders, so BDT 90,000 in sales. ROAS: 3.00. Cost per purchase: BDT 500.
- 5Profit: 60 × 660 − 30,000 = BDT 9,600. The ads make money.
- 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.
Read and get help
Campaigns built around profit per order, with Conversions API so purchases are counted properly.
ServiceConversion rate optimizationMore orders from the same traffic, so your cost per purchase falls.
GuideThe future of e-commerce in BangladeshWhere online selling in Bangladesh is heading, from payments to delivery.
GuideDigital marketing mistakes to avoidIncluding the one I see most: judging ads by ROAS without checking margin.
About the roas calculator
What is a good ROAS?
How do I calculate break-even ROAS?
What is the difference between ROAS and profit?
Should I include delivery charges in other costs?
How do Cash on Delivery returns change ROAS?
What is max cost per purchase?
Why is my ROAS in Meta different from my sales records?
ROAS looks fine but profit does not?
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