Find the maximum cost per purchase your product can support, your break-even ROAS, and the ROAS needed to preserve a target profit margin.
Adds your chosen buffer above the target ROAS. This is a planning cushion, not a platform recommendation.
Break-even ROAS = Selling Price ÷ Max Break-even CPA.
Target ROAS = Selling Price ÷ Max CPA that still leaves your chosen target profit.
Check profit at your current CPA →The calculator first subtracts product cost, shipping or fulfillment, payment/platform fees, refund reserve and other variable costs from selling price. What remains is the contribution available to pay for customer acquisition.
Maximum break-even CPA is the most you could spend to acquire one order before the modeled profit reaches zero. Break-even ROAS expresses the same limit as a revenue-to-ad-spend ratio.
Break-even is only a floor. Choose a target net margin and the calculator reserves that profit first, then shows the lower CPA and higher ROAS required to preserve it.
Break-even ROAS leaves approximately no modeled profit. A business normally needs a higher ROAS if it wants room for profit, overhead, attribution error, chargebacks or other costs not included in the calculator.
Because the target calculation reserves your chosen profit margin. That leaves less revenue available for advertising, which means the acceptable CPA falls and the required ROAS rises.
Yes. Enter the product, fulfillment, payment and other variable costs that apply to your Shopify setup. The same unit-economics logic can be compared with Meta, TikTok, Google or other paid advertising data.
Then the modeled product cannot support paid acquisition at the current price and cost structure. Increase price or reduce non-ad costs before relying on paid ads.