Many online sellers in Nepal judge ads by the ROAS shown in Ads Manager. But that number usually counts orders placed, not orders delivered and paid. Once product cost, delivery charges, payment or COD fees, and refused parcels are counted, the ROAS you need to break even is often much higher than expected.

This calculator works it out in NPR. Enter your own numbers; the defaults are a hypothetical example, not benchmarks. It runs in your browser and nothing is sent anywhere.

Calculator lying on printed bar charts next to a laptop

Break-even ROAS calculator (NPR)

Enter your own numbers. The defaults are a hypothetical example, not benchmarks.

What each field means

  • Average order value: the typical order total customers pay, in NPR.
  • Gross margin after product cost: the share of the order value left after paying for the product itself (and packaging, if you include it). If a product sells for NPR 2,000 and costs NPR 1,100, the margin is 45%.
  • Delivery cost per order you pay: what the delivery partner charges you per order. If customers pay delivery separately, enter only the part you cover.
  • Payment or COD fee: any percentage fee for wallets, cards, or COD collection.
  • Return-to-origin rate: the share of orders refused or undeliverable and sent back. See return to origin.
  • Return shipping cost: what you pay to get a refused parcel back.

How the calculation works

For each order placed:

  1. Profit if delivered = order value × margin − payment fee − delivery cost.
  2. Loss if returned = delivery cost + return shipping.
  3. Average contribution = (delivered share × profit if delivered) − (returned share × loss if returned).
  4. Maximum ad cost per order = average contribution.
  5. Break-even ROAS = delivered revenue per order ÷ average contribution.

If the average contribution is zero or negative, the business loses money on each order before spending anything on ads. Fix pricing, costs, or the return rate first.

Hypothetical example: with an average order of NPR 2,500, 45% margin, NPR 150 delivery, a 1.5% fee, 15% of orders returned, and NPR 100 return shipping, each placed order contributes about NPR 759. Break-even ROAS is about 2.8. If Ads Manager shows a ROAS of 3 on placed orders, the campaign may be barely profitable once refusals are counted.

How to improve your break-even point

  • Reduce refused orders: confirm COD orders by phone or WhatsApp, collect landmarks, and dispatch quickly. See cash on delivery.
  • Encourage prepaid orders with small incentives, such as free delivery for wallet payments.
  • Raise average order value with bundles and minimum free-delivery thresholds.
  • Negotiate delivery rates as volume grows.
  • Stop campaigns that bring many orders but high refusal rates.