Ads & offers
Break-even ROAS calculator
What ROAS do my ads need to break even, and to make a profit?
To make the same profit, you need
2.23×the orders
That's 123% more orders than at full price, because each order now keeps $18.78 instead of $41.80.
Profit per order, before ads
At full price
$41.80
25% off
$18.78
Break-even ROAS
At full price
2.39×
During the sale
3.99×
The biggest discount you can afford
Before ads
45.4%
every order still covers its costs
With ads at 3.00×
14.4%
after paying for the ads
At a 3.00× ROAS, every order in the sale loses $6.23 after ads. At full price, the same order would keep $8.47.
Book a strategy callPlanning a sale? 30 minutes with Dair, the founder.
THE MATH
Why a discount needs so many more orders
A discount comes straight out of your profit, not your costs. The product, the shipping and the box cost the same whatever the price. So when an order that kept $41.80 is sold at 25% off, it keeps $18.78, and you need 2.23 times the orders to end up where you started.
Orders needed = profit per order at full price ÷ profit per order on sale
Biggest discount = the price cut that leaves each order just covering its costs
Break-even ROAS on sale = sale price ÷ profit per order on sale
Worked example
The numbers already in the calculator above.
- Order value
- $100.00 → $75.00
- Product and shipping
- −$50.00 → −$50.00
- Payment fees
- −$3.20 → −$2.47
- Returns (5%)
- −$5.00 → −$3.75
- Profit per order
- $41.80 → $18.78
Orders needed$41.80 ÷ $18.78 = 2.23×
Break-even ROAS on sale$75.00 ÷ $18.78 = 3.99×
QUICK REFERENCE
How many more orders a discount needs
Find your margin before the discount (after product cost, shipping, fees and returns), then read across to your discount.
Swipe the table sideways to see every discount.
| Margin | 10% off | 15% off | 20% off | 25% off | 30% off | 40% off |
|---|---|---|---|---|---|---|
| 30% | +50% | +100% | +200% | +500% | — | — |
| 40% | +33% | +60% | +100% | +167% | +300% | — |
| 50% | +25% | +43% | +67% | +100% | +150% | +400% |
| 60% | +20% | +33% | +50% | +71% | +100% | +200% |
| 70% | +17% | +27% | +40% | +56% | +75% | +133% |
A dash means the discount is as big as the margin or bigger: every order loses money, however many you sell. The table treats every cost as fixed per order, so the calculator above is a little more exact.
FAQ
Questions about discounts and sales.
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Divide your profit per order at full price by your profit per order on sale. With a 40% margin, 20% off halves what each order keeps, so you need twice the orders, 100% more, just to make the same money.
The one where the sale price still covers what each order costs you: product, shipping, fees and refunds. Past that, every order loses money before you spend anything on ads. If you advertise the sale, the real limit is lower, because each order also has to pay for the ads that won it.
Break-even ROAS is 1 ÷ your margin before ads. A discount cuts the price but not your costs, so the margin shrinks and the ROAS your ads need goes up. In the example on this page, 25% off moves break-even from 2.39× to 3.99×.
Only if the extra orders cover the margin you give away, or the new customers come back and buy again at full price. A gift with purchase, a bundle, free shipping over a set amount or early access for your email list can often bring in sales for less than a sitewide discount.
Yes, if you will advertise it. Ads cost money on every order they win, so a discount that looks fine before ads can lose money after them. Enter the ROAS you expect during the sale to see both.
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