Break-Even ROAS in POD: How to Calculate It (and Why It Matters)

If you’re new to POD profit tracking, first check out our explainer: How to Calculate POD Profits (Step-by-Step). That guide shows you how to build a baseline profit formula. From there, break-even ROAS is the natural next step—it helps you decide if your ads are scaling profit or eating away margins. If you’re ready to track this number live across Shopify, Printify, and Meta Ads, see PodVector.

What Is ROAS (Return on Ad Spend)?

ROAS is a basic advertising metric. It answers one question: how much revenue did your business earn for each dollar spent on ads? For example, if you spent $100 on Meta Ads and generated $300 in revenue, your ROAS is 3.0 (or 300%).

But here’s the catch: ROAS doesn’t factor in costs like printing, shipping, transaction fees, or refunds. That’s why high-ROAS campaigns can still lose money in POD.

What Is Break-Even ROAS?

Break-even ROAS is the ROAS you must achieve to cover all your costs without profit or loss. If your campaigns are below this threshold, you’re operating at a loss. If you’re above it, you’re making money.

This metric is essential in POD because margins are thin, and costs like shipping or ad spend can swing fast. Even a 0.1 difference in ROAS can determine whether a campaign is profitable or draining cash.

Why Break-Even ROAS Matters in POD

• Protects cash flow: Many POD sellers operate without big loans or credit. Falling below break-even quickly drains working capital.
• Guides ad testing: When you know your break-even point, you can pause losing campaigns faster.
• Supports scaling: You can safely scale campaigns above break-even, knowing every extra dollar spent earns profit.
• Removes guesswork: Instead of “hoping” ads work, you measure success with a hard line.

How to Calculate Break-Even ROAS

The formula is straightforward:

Break-even ROAS = Total Revenue ÷ Total Costs

In POD, your costs usually include:

• COGS (Cost of Goods Sold): Printing, blank products, packaging.
• Shipping: Fees from Printify or Printful.
• Ad Spend: What you pay Meta, TikTok, Google, or Pinterest.
• Platform fees: Shopify, Stripe, PayPal transaction fees (e.g., 2.9% + $0.30).
• Refunds/chargebacks: Any returned orders or disputes.

Worked Example: Hoodie Campaign

Let’s say you run ads for a $50 hoodie. Here’s how the math breaks down for 100 orders:

• Revenue: 100 × $50 = $5,000
• COGS: 100 × $20 = $2,000
• Shipping: 100 × $6 = $600
• Payment fees: ~3% + $0.30/order ≈ $230
• Ad spend: $1,500

Total costs = $2,000 + $600 + $230 + $1,500 = $4,330

Break-even ROAS = $5,000 ÷ $4,330 = 1.15

That means your ads must generate at least $1.15 for every $1 spent to avoid losing money. If you achieve 2.0 ROAS, you’re nearly doubling that threshold and driving healthy profit.

Benchmarks: What’s a “Good” ROAS?

There’s no single “perfect” ROAS, but POD businesses can use these benchmarks:

• Below 1.0: Losing money (spending more than earning).
• 1.0–1.2: Break-even range (too risky for long-term growth).
• 1.3–2.0: Moderate profit zone (good for testing and scaling cautiously).
• 2.0–3.0: Healthy profit range (strong campaigns worth scaling).
• 3.0+: Excellent profitability (rare and often seasonal or niche wins).

Remember: the “right” ROAS depends on your product’s margins and ad strategy. A store with high AOV (average order value) can thrive at lower ROAS compared to one selling low-ticket items.

Manual Tracking vs. Automated Tools

You can calculate break-even ROAS manually with spreadsheets, but it takes time. Every week you’d need to:

1. Export sales from Shopify.
2. Export costs from Printify/Printful.
3. Pull ad spend from Meta or TikTok.
4. Account for refunds and fees.
5. Combine everything into one sheet and calculate ROAS.

This works but is time-consuming and error-prone. That’s why many sellers switch to automated tools. PodVector, for example, connects Shopify, Printify/Printful, and Meta Ads to show break-even ROAS live on your dashboard. Instead of juggling spreadsheets, you know instantly if a campaign is profitable.

How to Lower Your Break-Even ROAS

Lowering your break-even ROAS gives you more room for error. Here are tactics:

• Increase AOV: Bundles, upsells, or free-shipping thresholds make fees and ads more efficient.
• Cut shipping costs: Use regional POD providers or lighter blanks.
• Negotiate fees: Switch payment processors if possible, or qualify for Shopify Plus discounts.
• Optimize ad spend: Kill underperforming campaigns early, and reinvest into high-margin products.
• Reduce refunds: Improve product quality, mockups, and sizing charts to avoid unnecessary returns.

Weekly Workflow for POD Ad Profitability

1. Check revenue: Pull Shopify sales totals.
2. Log costs: Sync COGS + shipping from Printify/Printful.
3. Add ad spend: Export Meta/TikTok/Google data.
4. Include fees: Add payment and platform costs.
5. Calculate break-even ROAS: Revenue ÷ Costs.
6. Decide: Pause, scale, or test campaigns based on results.

Do this every week if using spreadsheets—or see it live with an automated tool like PodVector.

FAQs

What’s the difference between ROAS and break-even ROAS?

ROAS measures return on ad spend alone. Break-even ROAS sets the minimum threshold needed to cover all costs. Falling below it means you’re losing money.

What’s a safe ROAS to aim for in POD?

Aim for at least 1.5+ to have room for error. Anything under 1.2 is dangerous long term.

Can I just use Facebook’s ROAS metric?

No. Ad platforms calculate ROAS with revenue only. They don’t include your printing, shipping, refunds, or fees. You need to calculate break-even ROAS yourself or use a tool.

Does break-even ROAS change by product?

Yes. A hoodie with $20 COGS and $6 shipping has a different break-even than a mug with $7 COGS and $5 shipping. Always calculate per product if possible.