In short
- ROAS = revenue from ads ÷ ad spend. A ROAS of 3× means $3 in sales for every $1 of ads.
- Break-even ROAS = 1 ÷ profit margin before ads. A store that keeps 50% of each order breaks even at 2×.
- A good ROAS is any ROAS above your own break-even line. For Shopify stores with 30–60% margins that line sits between 3.3× and 1.7×.
How to use the ROAS calculator
- Enter your ad spend and the revenue those ads brought for the same period. Your ad platform or Shopify's marketing report shows both.
- Enter one typical order: its value, what the product costs you, shipping and fees. This sets your break-even line.
- Read the scale. Your marker right of the line means the ads make money; left of it, they lose it. Copy the link to keep the result.
How to calculate ROAS
$3,480 ÷ $1,200 = 2.9× - every dollar of ads brought $2.90 in sales.
ROAS (return on ad spend) counts sales, not profit. That is why a ROAS that looks good can still lose money: a $60 order that leaves you $10 after costs needs a far higher ROAS than one that leaves you $40. The break-even line below fixes that.
How to calculate break-even ROAS
$60 ÷ ($60 − $22 − $6 − $2) = $60 ÷ $30 = 2.0×. That is the same as 1 ÷ margin: 1 ÷ 50% = 2.0×.
The higher your margin, the lower the ROAS you need. Find your margin in the left column:
| Profit margin before ads | Break-even ROAS | Often seen in |
|---|---|---|
| 20% | 5.00× | resold branded goods |
| 30% | 3.33× | home decor, furniture |
| 40% | 2.50× | dropshipping |
| 50% | 2.00× | apparel |
| 60% | 1.67× | beauty, own-brand goods |
| 70% | 1.43× | jewelry, handmade, digital |
What is a good ROAS for a Shopify store?
A good ROAS is any ROAS above your break-even ROAS. The often-quoted "4× is good" only fits a store that keeps 25% of each order. A jewelry store at 70% margin makes money from 1.5×; a furniture store at 30% loses money at 3×.
Retargeting is where display ads pay. Shoppers who already viewed a product and see it again buy far more often. In July–September 2026, across 208,000 retargeting impressions for 9 stores in 7 verticals - apparel, home & garden, toys, car parts, food, luggage and hardware - each 1,000 retargeting impressions brought $16.47 in post-click sales (orders placed after a shopper clicked the ad). On plans with retargeting, at the default 20% retargeting share that works out to an estimated 3.1× ROAS (post-click), and about 5.0× at the maximum 33%. Your own number depends on your vertical, your prices and your traffic.
A US store selling electrical supplies, with about 60 orders a month, on the $30/month Essential plan. Retargeting is not part of Essential, so we switched it on for them. Over seven months it paid $204, and its ads brought 10 orders worth $5,830 - every one after a click on a retargeting ad.
28.6× ROASROAS vs ROI vs MER
| Metric | Formula | It answers |
|---|---|---|
| ROAS | revenue from ads ÷ ad spend | Do these ads bring sales? |
| Break-even ROAS | 1 ÷ profit margin | What ROAS do I need? |
| ROI | (profit from ads − ad spend) ÷ ad spend | Do these ads make profit? In the example: ($1,740 − $1,200) ÷ $1,200 = 45%. |
| MER | all revenue ÷ all marketing spend | Is my marketing working as a whole? |
What this calculator does not tell you
- Repeat buyers. A first order at break-even can still pay off when the customer comes back. The customer lifetime value calculator (coming next) shows how much a customer is worth over time.
- Returns and discounts. Use revenue after refunds and discount codes, or your ROAS will look better than it is.
- How sales are counted. Ad apps count sales from clicks, views or both, over different windows. Compare ROAS only between reports that count the same way.
- Fixed costs. Break-even here is per order. Rent, apps and salaries come on top.
By Bart Ziem, Adeagle · Formulas: standard definitions used by every ad platform · Benchmarks: Adeagle data, 2026 - post-click sales, an estimate, not a promise; your result depends on your products and prices