What is Break-Even ROAS in e-commerce?

Break-Even ROAS (Return on Ad Spend) is the minimum multiple of revenue to ad spend required to cover product costs, shipping, and transaction fees with zero loss.

How much does Shopify charge per transaction?

With Shopify Payments, the standard processing fee is 2.9% + $0.30 per online transaction on the basic plan, dropping on higher tier plans.

E-Commerce & Dropshipping Profit Engine

Shopify Profit & ROAS Calculator

Calculate true net profit per order, payment processing fees, break-even ROAS, maximum allowable CAC, and monthly business revenue.

Order Pricing & Cost Inputs

Product Selling Price ($)

Product Cost (COGS) ($)

Shipping Charged to Buyer ($)Put 0 if offering Free Shipping

Actual Shipping Cost / Box ($)

Ad Spend per Sale (CPA/CAC) ($)

Estimated Monthly Orders

Includes standard Shopify Payments / Stripe fee (2.9% + \$0.30 = \$1.75 / order).

Net Profit / Order

$13.74

Margin: 27.5%

Break-Even ROAS

1.57x

Max Allowable CPA

$31.74

Monthly Performance (350 Orders)

Total Monthly Revenue:$17497

Total Ad Spend (Meta/Google/TikTok):$6300

Product & Fulfillment Costs:$5775

Net Monthly Profit:$4809

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How to Calculate Shopify Profit Margins & Break-Even ROAS

Scaling a successful direct-to-consumer (D2C) brand requires absolute clarity on your unit economics. Tracking only ad platform ROAS without factoring in payment gateway cuts, pick-pack fulfillment, and returns leads to false profitability assumptions.

Break-Even ROAS Formula

Break-Even ROAS = Total Revenue ÷ (Revenue - COGS - Shipping - Fees)

If your ad ROAS is above this number, your campaigns are profitable.

Target Profit Margin

Healthy e-commerce brands target a 20% to 30% net profit margin after all digital advertising costs and operating expenses.

Related Tools:

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