Shopify Breakeven ROAS Calculator
Input your average order value, product cost, and Shopify processing fee to see the exact ROAS you must hit on Meta, Google, or TikTok. No fluff— just the economics every growth lead confirms before scaling spend.
Fold shipping, packaging, and fulfillment into cost. Only override the fee if you negotiated your own processor.
Result
Breakeven ROAS
Every $1 in paid ads must drive 1.68x in Shopify revenue to break even on the first order, which means you can spend up to $71.22 per order on ads.
Max ad spend / order
$71.22
Contribution margin
59.4%
Shopify + card fees
$3.78
Price / breakeven metric
Shopify price vs ROAS heatmap
This heatmap shows how changing your selling price shifts breakeven ROAS. Blue tiles are safer than your current ROAS requirement while orange or red tiles need stronger onsite conversion.
Shopify data
Reference benchmarks before scaling spend
Similar to the research block on EcomVivid's tool page, here are external stats we use when setting ROAS floors.
20.5% of global retail spend will be online in 2025
Shopify's 2026 global ecommerce report cites eMarketer data showing over one-fifth of worldwide retail happens online, so breakeven ROAS has to absorb increasing competition.
Shopify Global Ecommerce Statistics 2026$4.78 avg. Meta CPC (retail)
Revealbot’s Q3 2024 paid social benchmark shows retail CPC hovering near $4.78, which makes knowing your breakeven ROAS non-negotiable.
Revealbot Q3 2024 Facebook Ads Benchmarks2.9% + $0.30 Shopify fee
Shopify Basic in the US charges 2.9% + $0.30 per order through Shopify Payments, and that fee compounds as AOV rises.
Shopify PricingWhy this matters
Use the breakeven metric to keep teams aligned
Validate price tests
Check how bundles, subscriptions, or discount ladders affect your paid media ceiling before launch.
Align teams on CAC
Give finance and acquisition teams the same ROAS and CPA guardrails without digging through spreadsheets.
Protect margins at scale
Know when Meta, Google, or TikTok performance is slipping so you can fix offer, creative, or onsite conversion fast.
Formula
How the Shopify breakeven ROAS math works
- Gross profit = AOV − (Product Cost + Shopify fee + transaction fee).
- Contribution margin = Gross profit ÷ AOV.
- Breakeven ROAS = 1 ÷ Contribution margin.
Example: $120 AOV, $45 product cost, Shopify Basic fees of $3.78 equals $71.22 profit. Margin = 59%, so breakeven ROAS is 1.70x. Spend less than that and you profit on first order.
Why it matters
Bring math into creative testing
When you know your breakeven ROAS, you can decide faster whether to scale ads, pause campaigns, or rework an offer. Orcai gives you Shopify pages that convert higher so you can afford stronger CAC.
- Decide campaign goals by funnel stage.
- Bundle products without guessing margins.
- Give finance, marketing, and creative a shared source of truth.
Next steps
Ways to improve Shopify ROAS
Run these levers before pumping more dollars into ads. Every point of extra margin makes scale safer.
Improve contribution margin
Bundle products or add post-purchase upsells to increase AOV without raising acquisition cost.
Reduce fulfillment costs
Negotiate better shipping rates or work with 3PLs so product cost shrinks while price holds.
Dial in creative testing
Use Orcai sections to spin up variant messaging faster and drop spend into the highest converting product stories.
Tackle returning-customer ROAS
Layer email/SMS automation so you aren’t relying only on first-order paid acquisition.
FAQ
Breakeven ROAS questions we hear the most
Straightforward answers from our Shopify growth team.
What is breakeven ROAS for Shopify stores?
Breakeven ROAS is the revenue-to-ad-spend ratio where you cover product cost and Shopify fees for each order. Above that ratio you profit, below it you lose money.
How accurate is the calculator?
We use the official Shopify Payments processing fees for each plan and let you input real product costs. If you have negotiated rates, switch to the custom option.
Does this include subscription or app fees?
The calculator is intentionally simple: AOV and total product cost. For deeper financial modeling, stack in your monthly overhead separately.
How can Orcai help improve ROAS?
High-converting product pages improve onsite conversion, meaning you can afford higher CPMs while keeping ROAS strong. Orcai gives you AI-built landing sections ready for Shopify in minutes.
Turn ROAS into revenue
Launch high-converting Shopify product pages in minutes with Orcai
You already know your breakeven ROAS. Now beat it with faster page launches, CRO-ready sections, and smart AI insights.