Meta Ads ROAS calculator
Find the ROAS your Facebook and Instagram ads need to break even, the most you can pay for an order, and what a month of ad spend leaves you at the ROAS you get today.
- Break-even ROAS and CPA
- Target ROAS for your profit
- Your numbers only, no averages
Calculator
Enter your numbers.
Order value and margin give the break-even figures. Add your monthly spend and current ROAS to see what the month returns.
Break-even
Enter your order value and margin to see your break-even figures.
Break-even ROAS
Break-even CPA
Target ROAS
Your month at this ROAS
- Revenue from ads
- Orders
- Cost per order
- Profit after ads and costs
Formulas
How the ROAS calculator works.
Five formulas, all of them simple enough for a spreadsheet. Margin and profit are written as decimals, so 40% is 0.40.
Break-even ROAS
1 ÷ margin
The ROAS at which ad spend uses up the whole margin. With a 0.40 margin it is 2.5.
Break-even CPA
order value × margin
The most you can spend on ads for one order without losing money on it.
Target ROAS
1 ÷ (margin − profit wanted)
The ROAS that leaves the profit you want on every order after ad spend.
Revenue from ads
ad spend × ROAS
What a month of spend brings in at the ROAS you get today.
Profit after ads
revenue × margin − ad spend − other costs
What the month leaves you before fixed costs such as rent and salaries.
Your margin
Get the margin right and the rest follows.
Every result on this page depends on the margin. A margin that leaves out shipping or returns makes a losing campaign look profitable, so count what each order really costs you.
Take these off the order value
- Cost of the productWhat you paid to make or buy what was sold.
- PackagingBoxes, mailers, inserts and labels.
- ShippingForward shipping, and COD charges if you offer cash on delivery.
- Payment feesThe gateway or COD remittance fee on each order.
- Returns and RTOThe share of orders that come back or are refused, and what each costs you.
What is left, divided by the order value, is your margin per order. Leave out fixed costs such as rent, salaries and software: the profit figure on this page is before those.
Next steps
Below break-even? Three places to look.
Trust the numbers
If Meta and your store disagree on sales, fix tracking first. The Pixel with the Conversions API gives Meta the orders it needs to optimise.
Tracking and analytics setupImprove the campaigns
Campaign structure, creative and audiences move ROAS. Our Meta Ads service covers the full funnel, from prospecting to retargeting.
Meta Ads managementPay for results
We run Meta Ads on a flat monthly fee or on a revenue share, the client's choice. The share is agreed in writing after an account review.
Meta Ads on a revenue sharePlanning a store first? Use the website cost calculator or see all free tools.
FAQ
ROAS questions, answered.
Want us to look at your account? Ask on WhatsApp or with the form below.
ROAS, return on ad spend, is the revenue your ads bring in divided by what you spent on them. If ₹10,000 of Meta Ads spend brings ₹40,000 of sales, your ROAS is 4. It measures revenue, not profit, which is why the break-even figure matters more than the ROAS alone.
The ROAS at which your ads pay for themselves and no more. It is 1 divided by your margin. With a 40% margin every ₹100 of sales leaves ₹40 to pay for ads, so you need a ROAS of 2.5 to break even. Below that, every sale from ads loses money.
What is left from an order after the cost of the product, packaging, shipping, payment gateway fees and expected returns or RTO, as a percentage of the order value. Leave out fixed costs such as rent and salaries. A margin that is too high makes a losing campaign look profitable.
The most you can pay in ad spend for one order and still not lose money on it: your order value multiplied by your margin. If your average order is ₹1,500 and your margin is 40%, you break even at ₹600 of ad spend per order.
Enter the profit you want to keep from each sale after ads, as a percentage of the order value. The target ROAS is 1 divided by your margin minus that profit. With a 40% margin and 10% profit wanted, the target is 1 divided by 0.30, a ROAS of about 3.33.
No. The calculator works on the first order only. If your customers come back, the value of a customer over time is higher than one order, and a campaign that looks close to break-even on the first order can still be worth running. Judge that from your own repeat purchase data.
Meta Ads Manager counts sales by its own attribution window and can include view-through conversions, while your store counts orders. Tracking set up properly, with the Pixel and the Conversions API, keeps the two closer. Use the figure you trust for the ROAS field.
Yes. We are an official Meta Ads partner and run campaigns on a flat monthly fee or on a revenue share, the client's choice. The share and what counts as attributed revenue are agreed in writing after an account review, and tracking has to be in place first.
Meta Ads
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