Break-even ROAS calculator
Enter the selling price and order costs to see the ROAS your ads dashboard must beat before you start making money.
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How to use it
- Enter selling price per order, product cost, other costs per order (shipping, payment fees, packing) and target profit after ads, share of sales (optional).
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Order profit before ads = price − product cost − other costs. Margin = profit ÷ price. Break-even ROAS = 1 ÷ margin. Break-even CPA = order profit. Target ROAS = 1 ÷ (margin − target profit ÷ 100).
Example
Inputs: Selling price per order = 100, Product cost = 40, Other costs per order (shipping, payment fees, packing) = 10, Target profit after ads, share of sales (optional) = 10 %. Result: Break-even ROAS: 2 x; Highest ad cost per order (break-even CPA): 50.00; Margin before ads: 50%.
Limits and caveats
- Fixed costs such as salaries and rent are left out; this is break-even per order only.
- Platform ROAS can differ from real sales because of how orders are attributed.
Questions about this tool
What does a break-even ROAS of 2 mean?
Every 1 spent on ads must bring 2 in sales for you to neither win nor lose. Above it is profit, below it is loss.
What goes into other costs?
Every variable cost per order apart from ads: shipping, packing, payment fees, marketplace commission and, if you can estimate it, returns.
How do break-even ROAS and break-even CPA relate?
They are two sides of one calculation. Break-even CPA is the most you can pay in ads per order; break-even ROAS is the price divided by that amount.