Account Strategy
Adam
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Every e-commerce founder can tell you their ROAS. Almost none can tell you their break-even ROAS — the exact return they need just to stop losing money on every order. That blind spot is where profit quietly leaks out of an account.
Why ROAS on its own lies
A 3× ROAS sounds healthy. But ROAS only compares revenue to ad spend — it ignores the cost of the product, shipping and fulfilment, and payment processing fees. Once you subtract all of that, a “strong” 3× campaign can still be handing you a loss on every single order.
Break-even ROAS, in one line
Your break-even ROAS is 1 ÷ (1 − COGS% − payment fee% − shipping per order ÷ AOV). Hit it exactly and you make nothing. Clear it comfortably and you’re genuinely profitable. Fall below it and every pound you spend is costing you money.
Find your number
Plug your spend, revenue and margins into the calculator below. It shows your break-even ROAS, whether you’re actually profitable, your monthly profit after ad spend, and how much you make — or lose — per order. Everything runs in your browser; nothing is stored.
What the result is telling you
If you’re below break-even, more spend just means faster losses — the structure has to change before the budget does. If you’re only just above it, your margin is one bad week away from red. And if you’re clearing it comfortably, the question stops being “is this profitable?” and becomes “how much further can we scale it?”
That’s exactly the work we do at Kairo — rebuilding e-commerce Google Ads accounts around margin, not vanity ROAS. If your numbers look tight, or you want to scale the ones that don’t, a free Google Ads audit will show you where the profit is hiding.