Break-Even ROAS, Max CPA & Profit per Order Calculators (VAT-Adjusted EU / UK)
Free unit economics calculators for European & UK online stores: true Break-Even ROAS, Max CPA, and net profit per order after VAT, shipping, payment fees, and returns.
Below what ROAS are your Meta, Google, or TikTok ads losing money?
What is the maximum CPA you can afford on Google, Meta, or TikTok Ads?
How much true net profit do you keep per order after returns and ad spend?
- Net Revenue (excl. 20% VAT)€74.17
- COGS + Shipping− €26.90
- Payment Processing Fees− €2.57
- Other Variable Costs− €1.20
Formula: True VAT-Adjusted Break-Even ROAS & Target ROAS
Net AOV = Gross AOV ÷ (1 + VAT Rate)
Contribution Margin before Ads = Net AOV − Landed COGS − Shipping/Fulfillment − Payment Fees
Break-Even ROAS (Gross Ad Manager) = Gross AOV ÷ Contribution Margin before Ads
Break-Even CPA = Contribution Margin before AdsMost US ROAS calculators simply divide `1 ÷ Gross Product Margin`. In the EU, UK, and Switzerland, consumer prices include VAT (19%–25% or 8.1%), which Meta, Google, and TikTok pixels report inside Gross Revenue. Stripping out VAT, outbound shipping, and Stripe/PayPal/Klarna fees reveals your true Break-Even ROAS.
Worked Example: €85.00 / £85.00 AOV in a European DTC Store
On an 85.00 gross order (20% VAT = 70.83 net), with 24.00 landed COGS, 5.40 fulfillment/shipping, and 2.82 payment processing fees, your true Contribution Margin before Ads is 38.61. Your Break-Even ROAS inside Meta/Google Ads Manager is 85.00 ÷ 38.61 = 2.20x (not the naive 1.47x from product cost alone).
How to Calculate True Break-Even ROAS (incl. EU/UK VAT & Fees)
Calculate your exact contribution-margin Break-Even ROAS and Target ROAS for Meta, Google, and TikTok Ads.
- 1. Select Currency, Gross AOV & VAT Rate: Enter your average gross order value in EUR, GBP, CHF, or USD and select your VAT rate (e.g., 19% DE, 20% UK/FR/AT, 21% ES/NL, 0% US).
- 2. Input Landed COGS & Fulfillment Costs: Enter net unit product cost plus pick, pack, packaging, and outbound shipping cost.
- 3. Set Payment Processing Fees & Desired Net Profit Margin: Choose your payment gateway preset (Stripe, PayPal, Klarna) and target net profit percentage after ad spend.
- 4. Read Gross Break-Even ROAS, Target ROAS & Max CPA: Plug the Gross Break-Even ROAS and Target ROAS directly into your Google Ads or Meta Ads bidding targets.
Break-Even ROAS Lookup Table (at 80.00 Gross AOV, 20% VAT, 4.90 Shipping & 2.5% Payment Fee)
| Net Product Margin % | Landed COGS | True Contribution Margin before Ads | Naive ROAS (COGS only) | True Break-Even ROAS (Gross Ad Manager) |
|---|---|---|---|---|
| 70% Product Margin (Cosmetics / Supplements) | 20.00 | 39.77 | 1.43x | 2.01x |
| 60% Product Margin (DTC Apparel / Home) | 26.67 | 33.10 | 1.67x | 2.42x |
| 50% Product Margin (Standard Retail) | 33.33 | 26.44 | 2.00x | 3.03x |
| 40% Product Margin (Multi-Brand / Tech) | 40.00 | 19.77 | 2.50x | 4.05x |
| 30% Product Margin (Low-Margin Goods) | 46.67 | 13.10 | 3.33x | 6.11x |
At a 50% product margin with 20% VAT, any campaign running below a 3.03x Gross ROAS loses money on the first order.
Frequently Asked Questions (FAQ): Break-Even ROAS Calculator
How do you calculate Break-Even ROAS with VAT in the UK and Europe?
First divide your Gross Average Order Value (AOV) by `(1 + VAT Rate)` to get Net Revenue. Subtract COGS, shipping/fulfillment, and payment processing fees to get your Contribution Margin before Ads. Finally, divide Gross AOV by that Contribution Margin (`Gross AOV ÷ Contribution Margin`). That gives the exact Gross ROAS needed inside Meta or Google Ads to break even.
What is the difference between ROAS and POAS?
ROAS divides Gross Revenue by Ad Spend, whereas POAS (Profit on Ad Spend) divides Contribution Margin before Ads by Ad Spend. A POAS of 1.0x always equals break-even across every SKU regardless of product margin differences.
Related Calculators & Formula Documentation
Calculate your true VAT-adjusted Break-Even ROAS, Target ROAS, and Maximum CPA for Meta, Google, and TikTok Ads.