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Break-Even ROAS Calculator Australia — FY 2025-26

A Break-Even ROAS Calculator Australia tells you the exact return on ad spend needed to cover your product costs, overheads, and marketing expenses.

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ROAS is total revenue divided by ad spend. Break-even ROAS is the minimum ROAS needed to cover all costs including COGS, overheads, and ad spend. ROAS tells you revenue efficiency; break-even ROAS tells you profitability.
Increase your average order value through upsells, reduce your COGS by negotiating with suppliers, lower fixed overheads, or decrease your ad spend while maintaining revenue. Any of these actions will lower your break-even ROAS.
Not necessarily. Some campaigns serve top-of-funnel purposes like brand awareness or email list building. However, direct-response campaigns consistently below break-even should be optimised or paused to avoid cash burn.
No, but you can adjust your COGS percentage upward to account for an expected refund rate. If 5% of orders are refunded, add 5% to your COGS input for a more conservative break-even calculation.
4 min readLast updated: 2026-05-26

About the Break-Even ROAS Calculator

A Break-Even ROAS Calculator Australia tells you the exact return on ad spend needed to cover your product costs, overheads, and marketing expenses. For Australian e-commerce businesses running campaigns through Google, Meta, or TikTok, knowing your break-even ROAS is the foundation of profitable advertising. Many businesses chase a "4x ROAS" without knowing their true break-even point, leaving money on the table or cancelling profitable campaigns prematurely. This calculator factors in your average order value, cost of goods sold, fixed overheads, and ad spend to determine the minimum ROAS required to break even. Whether you run a boutique in Melbourne or a dropshipping store in Perth, this tool ensures every dollar you spend on ads has a clear profitability threshold.

What is the Break-Even ROAS Calculator?

The Break-Even ROAS Calculator is a financial analysis tool that computes the minimum return on ad spend required for your campaigns to neither make nor lose money. ROAS stands for Return on Ad Spend, calculated as revenue divided by ad cost. However, gross revenue includes the cost of the products sold, so a ROAS of 2.0 may still mean you are losing money. This calculator solves that problem by incorporating your product margins. It takes your average order value, cost of goods sold (COGS) as a percentage of revenue, fixed monthly overheads, and total ad spend to calculate your net profit break-even ROAS. For Australian businesses, the calculator also factors in GST on products and the 10% GST on advertising platform fees. The result is a precise ROAS target that tells you exactly what multiplier you need to hit on ad spend to avoid losses. If you are currently achieving a 3.5x ROAS but your break-even is 3.0x, you are profitable. If your break-even is 4.0x, you are losing money despite what looks like a healthy ROAS.

How to Use This Calculator

  1. 1Enter Average Order Value: Input the average revenue per customer order in AUD, including GST. Use the figure from your e-commerce platform or POS system.
  2. 2Enter COGS Percentage: Input your cost of goods sold as a percentage of revenue. This includes product cost, packaging, and shipping. For example, if a $100 item costs $40 to produce, enter 40%.
  3. 3Enter Fixed Monthly Overheads: Input your total business fixed costs per month such as rent, salaries, software subscriptions, and utilities. These are costs that exist regardless of ad spend.
  4. 4Enter Monthly Ad Spend: Input your total advertising spend per month across all platforms in AUD.
  5. 5Enter Other Variable Costs: Input additional variable costs per order such as payment processing fees (typically 1.75-3% per transaction).
  6. 6Click Calculate: The tool displays your break-even ROAS, net profit or loss at current ROAS, the ROAS required for a 20% profit margin, and a visual breakeven chart showing profit at different ROAS levels.

Worked Australian Example

Practical Example

Consider Newcastle-based skincare brand Pure Coast. They sell organic face serums for $65 per unit with a COGS of $22.75 (35% of revenue). Their fixed monthly overheads including Shopify, rent, and a part-time assistant total $8,500. They currently spend $6,000 per month on Meta and Google Ads and achieve a 3.8x ROAS ($22,800 revenue from $6,000 ad spend). Using the Break-Even ROAS Calculator, they enter $65 AOV, 35% COGS, $8,500 fixed overheads, $6,000 ad spend, and 2% payment processing fees. The calculator shows their break-even ROAS is 2.3x. Since they are currently achieving 3.8x, they are profitable — but barely. Their net profit after all costs is $1,108 per month, a 4.5% net margin. The tool also shows that to achieve a healthy 20% net profit margin, they need a 4.2x ROAS. Pure Coast now has a clear target to optimise toward.

Common Break-Even ROAS Calculator Questions

ROAS is total revenue divided by ad spend. Break-even ROAS is the minimum ROAS needed to cover all costs including COGS, overheads, and ad spend. ROAS tells you revenue efficiency; break-even ROAS tells you profitability.
Increase your average order value through upsells, reduce your COGS by negotiating with suppliers, lower fixed overheads, or decrease your ad spend while maintaining revenue. Any of these actions will lower your break-even ROAS.
Not necessarily. Some campaigns serve top-of-funnel purposes like brand awareness or email list building. However, direct-response campaigns consistently below break-even should be optimised or paused to avoid cash burn.
No, but you can adjust your COGS percentage upward to account for an expected refund rate. If 5% of orders are refunded, add 5% to your COGS input for a more conservative break-even calculation.
Recalculate whenever your COGS changes, your overheads change, or your average order value shifts significantly. Monthly recalculations are recommended for active advertisers.

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Reviewed by

BizMetrixs Team

Australian Financial Specialists

This Break-Even ROAS Calculator Australia calculator provides estimates only. Results are based on ATO 2025-26 published rates and general calculation methods. Individual circumstances may vary. This tool is for informational and educational purposes only and does not constitute financial, tax, or legal advice. For personalised advice, consult a registered tax agent or financial adviser.