Break-even ROAS Calculator
Break-even ROAS is the lowest ROAS at which your ads pay for themselves. Below it you lose money on each sale; above it you profit.
What is break-even ROAS?
Break-even ROAS = selling price ÷ profit before ads. It turns your margin into the minimum ROAS every campaign must beat.
How to use the break even ROAS calculator (formula)
What each field means
- Selling price — Average order price.
- Product cost — Product cost per order.
- Shipping cost — Shipping per order.
- Payment & platform fees — Payment and platform fees per order.
Worked example
Using these numbers: selling price $50.00, product cost $15.00, shipping cost $5.00, payment & platform fees $3.00.
The break-even roas is 1.85x.
- Profit before ads: $27.00
- Break-even CPA: $27.00
- Margin before ads: 54.0%
How should I use break-even ROAS?
Set it as the floor in campaign reviews. Most advertisers set a target ROAS 30–50% above break-even to leave profit after refunds and overheads.
Tips to improve your result
- Higher margins lower your break-even ROAS.
- Recalculate when prices or costs change.
- Use it per product for catalog campaigns.
- Pair it with the CPA calculator for daily decisions.
Frequently asked questions
How do I calculate break-even ROAS?
Divide the selling price by the profit before advertising.
What is a good break-even ROAS?
Lower is better — under 2 means strong margins.
Break-even ROAS vs target ROAS?
Break-even earns zero profit; target ROAS includes the profit you want.
Why does margin matter for ROAS targets?
The thinner the margin, the more revenue each ad dollar must bring just to cover costs.
You might also need
ROAS CalculatorReturn on ad spend from revenue and spend.
Dropshipping Break-even CalculatorThe most you can pay for ads before losing money.
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