Enter your order numbers and costs. You'll get the break-even ROAS for your ads, plus the target to set if you want to keep a profit after ad spend. This assumes the conversion value in your ad account is order revenue.
Average revenue per order, as reported in your ad account.
$
Share of the order value that is tax, if your conversion value includes it.
%
Share of revenue you refund on average.
%
What's left after the cost of the product itself.
%
Average dollars per order, including free shipping you cover.
$
As a % of order value. For example payment fees or app fees.
%
Profit per order as a % of order value, after product, shipping, returns and fees, but before ads.
%
Your target ROAS shows here once you add your order value and margin.
Target ROAS to set
0%0.00x
0%
As a % of revenue. Leave at 0% to see the break-even point.
Profit margin before ads0%
Break-even ROAS0%
Where an average order goes
How this is calculated
Everything is worked out per average order, then turned into a margin:
Revenue after tax = order value × (1 − sales tax)
Revenue you keep = revenue after tax × (1 − return rate)
Profit before ads = revenue you keep × gross margin − ship cost − (order value × other costs)
Profit margin = profit before ads ÷ order value
Break-even ROAS = 1 ÷ profit margin
Target ROAS = 1 ÷ (profit margin − profit you want to keep)
Shipping cost is counted on every order, including ones that get returned. Google Ads enters tROAS as a percentage (400%), while Meta uses a decimal (4.00). Both are shown above. These are planning numbers, not a guarantee of results.