The break-even ROAS formula
Contribution per order = price × (1 − fee rate − refund rate) − fixed fee per order
Acquisition budget = contribution per order × orders − period fixed costs
Break-even ROAS = gross revenue ÷ acquisition budget
The result is defined only when there is a positive acquisition budget and a positive order count. It uses gross revenue, so compare it with a reported ROAS using the same revenue basis. A report that excludes refunds or uses a different attribution period cannot be compared blindly.
A worked example with fixed costs
Using a $50 price, a 3% fee, a $1 fixed fee and a 5% refund assumption leaves $45 before acquisition per order. Ten orders leave $450. Subtracting $40 in period fixed costs leaves $410 available for acquisition.
Gross revenue is $500, so period break-even ROAS is $500 ÷ $410, about 1.22×. Excluding fixed costs gives $50 ÷ $45, about 1.11×. The $41 per-order acquisition limit includes the fixed-cost allocation. These example fees are not a quote from a payment provider.
Why a break-even number is not a target
At the boundary, the model leaves no profit buffer. Missing production, support, taxes, exchange rates or additional transaction charges can make the apparent boundary too generous. Use your own budget and margin requirements.
A favorable attributed ROAS does not prove a paid, non-refunded order. Use transaction records when reviewing the launch and the CAC calculator for actual new-customer acquisition cost.
When ROAS is undefined
If fees, refunds and fixed costs consume the contribution, there is no positive budget left for ads at that order volume. Zero expected orders also cannot define a period ROAS. The calculator reports an undefined limit while keeping the cost deficit visible.
Use the refund impact calculator to inspect returned revenue, or the bundle pricing calculator to compare another offer.
Definitions and sources
Shopify explains ROAS as revenue divided by advertising spend. Stripe’s break-even guide explains why fixed and variable costs need the same period. This tool applies an explicit, simplified digital-product cost model.
What this tool does not include
Results cover only the entered costs and assumptions. Tax, financing, exchange rates, unentered support or production costs and the value of your time are excluded. This calculation does not verify market demand or guarantee income.