Break-Even ROAS Calculator
Find the minimum ROAS at which ads pay for themselves, based on your selling price and product cost.
- Margin per sale
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- Profit per sale before ads
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Uses only the price and cost you enter; it does not include overheads or taxes.
What is the Break-Even ROAS Calculator?
Break-even ROAS is the lowest return on ad spend at which a sale covers its own product cost and the ad cost behind it. It equals the selling price divided by the margin per sale. Any campaign ROAS above this figure earns a profit before overheads.
How it works
Margin per sale = price minus cost, where cost includes product, shipping and payment fees. Margin % = margin / price x 100. Break-even ROAS = price / margin, which is the same as 100 / margin %. If margin is zero or negative, the result shows zero.
How to use it
- Enter the selling price of the product.
- Enter the full cost per sale including shipping, packaging and fees.
- Read the margin and the break-even ROAS.
- Compare it with the ROAS your campaigns actually deliver.
Break-Even ROAS Calculator — FAQ
What should I include in the cost?
Include product cost, shipping, packaging, payment gateway fees, returns allowance and any marketplace commission. Leave out fixed overheads such as rent.
Why is the result zero?
It appears when the cost is equal to or higher than the price, because no ad spend could then be recovered from that sale.
Should I aim exactly at break-even?
No. Break-even only covers the ad cost. You need a ROAS above it to fund overheads and profit.