E-commerce ROAS Calculator

Most e-commerce platforms charge: Commission Fee (varies by platform), Payment Processing Fee (2-3%), and sometimes Transaction Fees. As of 2025-2026: Shopee charges 4-15% (+5% tech fee in some regions), Lazada 5-22% (all-in-one model), Amazon 8-15%, TikTok Shop 5-9%. You should also account for shipping costs, packaging materials, and return/refund losses. Always check your seller dashboard for exact rates as fees change frequently.

Break Even ROAS = Selling Price ÷ (Selling Price - Total Costs). Total Costs include: Product cost + Platform commission + Payment fee + Shipping (if seller-paid) + Packaging + Return losses. For example, if you sell at $25 with $15 total costs, your BEROAS = 25 ÷ 10 = 2.5. You need ROAS above 2.5 to profit.

Yes, if you offer free shipping or subsidized shipping, you must include this cost. Many sellers lose money because they forget to factor in shipping. If buyers pay full shipping, you can set shipping cost to $0. If you offer free shipping over a certain amount, calculate the average shipping cost per order based on your order history.

Simple ROAS (Revenue ÷ Ad Spend) shows how much revenue you generate per dollar spent on ads - this is what platforms show in their dashboards. Break Even ROAS is the minimum ROAS you need to cover all costs and not lose money. Simple ROAS of 3.0 might look good, but if your BEROAS is 3.5, you are actually losing money.

Returns significantly impact profitability. When a customer returns an item, you lose the product cost, shipping cost, and packaging cost. A 5% return rate on a $25 product with $12 fulfillment cost means you lose $0.60 per order on average. High return rates (10%+) can make seemingly profitable campaigns actually lose money.

This calculator works for all major e-commerce platforms including Shopee, Lazada, Amazon, TikTok Shop, eBay, Etsy, and others. Simply enter your platform-specific commission rate (check your seller dashboard) and other costs. The Break Even ROAS formula is universal across all platforms.

To lower BEROAS: 1) Negotiate better product costs with suppliers, 2) Optimize packaging to reduce costs, 3) Increase selling price if market allows, 4) Reduce return rate with better product photos and descriptions, 5) Use platform shipping subsidies when available, 6) Qualify for lower commission tiers by increasing sales volume.

Platform dashboards often show "Placed Order ROAS" which includes orders that may be cancelled or returned. "Confirmed ROAS" is more accurate. Also, dashboards do not account for your product costs, fees, and returns - that is why calculating your own Break Even ROAS is essential for true profitability analysis.

Set your ad platform ROAS target at least 20-30% above your Break Even ROAS. For example, if your BEROAS is 2.5, set your target to 3.0-3.5. This buffer accounts for variations in performance and ensures you maintain healthy profit margins while the platform optimizes your campaigns.