Break-even ROAS calculator
Scaling Socials built this to answer one question: what return on ad spend do you need before a D2C order makes money? Enter your average order value, gross margin and current ROAS to see your break-even ROAS and profit per order.
How break-even ROAS is calculated
Break-even ROAS is the return on ad spend at which an order exactly covers its own ad cost and its gross production cost. It is the point where paid acquisition stops losing money and starts making it.
Break-even ROAS = 1 ÷ gross margin.
Profit per order = AOV × gross margin − (AOV ÷ ROAS).
Worked example: if your average order value is ₹1,200 and your gross margin is 40%, your break-even ROAS is 1 ÷ 0.40 = 2.5×. At a 3× ROAS, each order earns ₹1,200 × 0.40 − ₹1,200 ÷ 3 = ₹480 − ₹400 = ₹80 in profit before overheads. These figures are an illustrative example, not a client result.
Run your numbers
Change any input and the result updates. The URL updates too, so you can share or bookmark a result. With JavaScript disabled, the example below is shown for reference.
Below this, every order loses money. Above it, each order contributes profit.
At 3× you clear break-even and keep ₹100 per order.