Shopify fees in this calculation
Presets reflect typical Shopify economics (verified 2026-07-23) — adjust every field to your actual numbers. Estimates only.
| Payment processing Shopify Payments online rate, Basic plan — plan-dependent | ~2.9% + 30¢ |
| Shipping Whatever your label + packaging actually costs per order | merchant-paid |
| Fulfillment / 3PL Pick-pack fee if you use a 3PL; $0 if self-fulfilled | $3–$6 typical |
Worked examples
Typical DTC product
| Selling price | $60.00 |
| All per-order costs | $30.04 |
| Contribution margin | $29.96 |
| Break-even ROAS | 2.00× |
The classic 50% gross margin store: break-even at exactly 2.0×.
Free-shipping threshold order
| Selling price | $90.00 |
| All per-order costs | $41.91 |
| Contribution margin | $48.09 |
| Break-even ROAS | 1.87× |
Higher AOV absorbs the "free" shipping you are actually paying for.
Break-even ROAS by margin — quick reference
| Gross margin (after fees) | Break-even ROAS |
| 20% | 5.00× |
| 25% | 4.00× |
| 33% | 3.03× |
| 40% | 2.50× |
| 50% | 2.00× |
| 60% | 1.67× |
Frequently asked questions
What ROAS should I target on Meta ads for Shopify?
Target above your break-even ROAS, not an industry benchmark. A 50%-margin store breaks even at 2.0×, so a 3.0× target leaves real profit; a 25%-margin store needs 4.0× just to break even. Calculate your floor first, then set the campaign target above it.
Should shipping costs be included in break-even ROAS?
Yes, if you pay them. "Free shipping" is a marketing label, not an accounting one — the label cost comes out of your margin on every order and belongs in the calculation. Only exclude shipping you fully pass on to the customer.
Does this account for Shopify subscription fees?
No — monthly plan fees are fixed overhead, not per-order costs, so they sit below contribution margin. Break-even ROAS covers variable costs only, which is why your true all-in break-even is slightly higher than the number shown.
How do returns affect break-even ROAS?
Returns raise it. If 10% of orders come back, only ~90% of ad-driven revenue survives, so your real ceiling is roughly your margin × 0.9. This calculator shows the per-order floor; add a buffer that matches your return rate.