Breakeven ROAS calculator for Indian D2C
Find the ROAS your Meta or Google campaigns need once GST, cash on delivery, RTO, shipping and gateway fees are counted. The example numbers are illustrative; replace them with yours.
Breakeven ROAS in Ads Manager
2.61×
Below this, every order the platform reports costs you money. Breakeven cost per purchase: ₹383.
- Target ROAS for 10% margin
- 3.24×
- Target cost per purchase
- ₹309
- Shortcut “1 ÷ margin”
- 1.76×
- Orders actually delivered
- 87.5%
Where an order’s money goes
- Product cost₹245
- Shipping + packaging₹85
- RTO losses₹7
- COD + gateway fees₹21
- Left for ads and profit₹383
- Per order placed, out of ₹741 realised revenue after GST and RTO.
How the calculation works
Ad platforms report ROAS as attributed order value divided by spend. That order value usually includes GST, and it counts orders at checkout, before any cash-on-delivery order is refused. This calculator works out what one attributed order is really worth to you, then turns that into the ROAS you need to see in Ads Manager.
- Delivered share = prepaid share + COD share × (1 − RTO rate).
- Realised revenue per order = delivered share × order value ÷ (1 + product GST rate).
- Costs per order = product cost on delivered orders + shipping and packaging on every shipped order + return shipping on RTO orders + COD fees on delivered COD orders + gateway fees on prepaid orders.
- Contribution per order = realised revenue − costs. This is the most you can spend on ads per order before losing money.
- Breakeven ROAS = order value ÷ contribution per order. If you can’t claim GST input credit on ad invoices, each rupee of ads costs ₹1.18, which raises the breakeven by 18%.
The calculator assumes returned stock goes back into inventory. If RTO stock is damaged or written off, add that loss to your product cost.