flowpeekresources / roas calculator
ROAS and break-even ROAS calculator
Check whether a campaign actually makes money once margin and order costs are counted, not just whether its ROAS looks high. Enter a few numbers from your ad platform and store, and the calculator shows the break-even point, profit after ad costs and cost per order.
Work out your campaign's result.
Result
Enter revenue, campaign cost and margin. The results show up here right away, along with the formulas.
Formulas
How the calculator works.
You enter margin and variable costs as a percentage of revenue. The difference between them tells you how much of every zloty of sales is left for advertising and profit. That single number gives you the break-even ROAS and the maximum cost per order.
How to read the verdict
- Profitable: ROAS is above the threshold, and the result after ads exceeds 5% of the campaign cost.
- Borderline: The result after ads is within ±5% of the campaign cost, which means ROAS is very close to the threshold.
- Losing money: ROAS is below the threshold, or the margin does not cover the variable costs of an order.
- ROAS
- ROAS = revenue / campaign cost
- How much revenue each zloty spent on ads brings in. We show it as a multiple (4x) and as a percentage (400%); it is the same ratio.
- Left for ads and profit
- Left for ads and profit = gross margin − other variable costs (as % of revenue)
- The part of every zloty of revenue that remains after the cost of goods, shipping, payments and commissions.
- Break-even ROAS
- Break-even ROAS = 1 / (gross margin − other variable costs)
- The ROAS at which the campaign breaks even before fixed costs. If the margin does not cover the variable costs, there is no such threshold.
- Profit after ad costs
- Profit after ad costs = revenue × (gross margin − other variable costs) − campaign cost
- The amount left for fixed costs (team, warehouse, tools), taxes and profit.
- Maximum cost per order
- Maximum cost per order = (revenue / number of orders) × (gross margin − other variable costs)
- The highest ad cost per order at which the campaign still does not lose money. Also called break-even CPA.
- Actual cost per order (CPA)
- Actual cost per order = campaign cost / number of orders
- What advertising actually cost per order. Compare it with the maximum cost.
Example with made-up numbers
Example: ROAS 4.00x at a 45% margin.
This is an example, not the result of a real store. The campaign cost PLN 3,000 and brought in PLN 12,000 in revenue from 80 orders. The gross product margin is 45%, and shipping, payments and commissions cost 15% of revenue.
| Metric | Calculation | Result |
|---|---|---|
| ROAS | 12,000 / 3,000 | 4.00x (400%) |
| Left for ads and profit | 45% − 15% | 30% of revenue |
| Break-even ROAS | 1 / 30% | 3.33x |
| Profit after ad costs | 12,000 × 30% − 3,000 | PLN 600.00 |
| Average order value | 12,000 / 80 | PLN 150.00 |
| Maximum cost per order | PLN 150.00 × 30% | PLN 45.00 |
| Actual cost per order | 3,000 / 80 | PLN 37.50 |
Takeaway from the example: The campaign is profitable: ROAS 4.00x is above the break-even ROAS of 3.33x. After ad costs, PLN 600.00 is left before fixed costs. The cost per order of PLN 37.50 is below the maximum of PLN 45.00.
What the calculator does not account for.
- Returns and canceled orders. Subtract them from revenue before you enter the numbers.
- Fixed costs and taxes. Profit after ad costs is the amount that has to cover them.
- Repeat purchases by the same customers. A campaign that acquires new customers may only pay off when they come back.
- How sales are attributed. The ad platform and your analytics may credit the campaign with different revenue, so note which report the number comes from.
Guide
ROAS vs profit: how to judge an e-commerce campaign
Where the numbers in the ad platform come from, how to compare periods and what to check before changing your budget.
Read the guideFlowpeek module
Marketing costs
Campaign costs next to the sales they brought in, with ROAS and cost per order for connected ad accounts.
See the moduleFree PDF checklist (in Polish)
Checklist: 30 store analytics checks
ROAS is only as good as the numbers behind it. The checklist covers 30 specific checks in 8 areas, each in a single sentence. Go through it before you change your budget, then come back to the routine section. The PDF is available in Polish only.
- Tracking and tags (4)
- Orders and statuses (4)
- Consent and cookies (4)
- UTM and traffic sources (4)
- Ad costs (4)
- Attribution and comparing reports (4)
- Product data (3)
- Routine: weekly and monthly (3)
The checklist goes to subscribers of our Polish-language newsletter, Store under the lens. Sign up, confirm your subscription in the e-mail from Flowpeek, and the next e-mail brings the checklist as a PDF.
The checklist in your inbox.
Signing up is free and does not require a Flowpeek account. The newsletter and the checklist are in Polish. We send the checklist by e-mail once you confirm your subscription.
One practical tip every so often, in Polish. Unsubscribe via the link in any e-mail.
Questions and answers
Questions about ROAS and break-even.
Should I use net or gross revenue?
Pick one basis for all amounts. A VAT-registered store usually works with net figures, because it deducts VAT on ads and goods. If the ad platform shows revenue including VAT, convert it to net before entering it. Mixing bases inflates or deflates ROAS.
Where do I find the gross product margin?
It is the part of the selling price left after the purchase cost of the goods. You get the most accurate figure for the products the campaign actually sells. The average margin of the whole store may differ from the margin of the advertised products.
What goes into other variable costs?
Costs that grow along with sales: shipping subsidies, payment provider fees, marketplace or price comparison commissions, packaging. Enter them as a percentage of revenue. If you do not know them, start with 0% and keep in mind that the result will then be too optimistic.
Does the calculator store my data?
No. The numbers stay in your browser and disappear when you close the page. We do not send them to a server or to analytics tools. If you consent to analytics, we only record that the calculator was used.
Why is a high ROAS not enough?
ROAS compares revenue with ad cost, but it does not see the cost of goods or order handling. With a low margin, even a ROAS of 5x can mean a loss, while with a high margin a ROAS of 2x can be profitable.
30 days on your own data
See campaign costs next to your store's sales.
Flowpeek shows costs from connected ad accounts next to orders from your store. The Flowpeek team sets up your store in 48 hours, and you can test it for 30 days for PLN 0.
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