Break-Even ROAS Calculator
Break-Even ROAS Calculator
Find the minimum ROAS and maximum CPA you can afford from price, product cost, shipping and fees, plus the target ROAS for your desired profit.
- 100% free
- No sign-up
- No API key needed
What is the Break-Even ROAS Calculator?
Break-even ROAS is the return on ad spend at which advertising neither makes nor loses money. Below it, every sale from ads costs you; above it, ads are profitable. Enter your selling price, product cost, shipping, payment fees and other per-order costs, and the calculator finds your contribution margin, break-even ROAS and the maximum you can spend to win an order.
Set the profit margin you want to keep and it also gives you the target ROAS to use in Google Ads, Meta or Amazon campaigns.
Key features of the Break-Even ROAS Calculator
Full cost breakdown
Product cost, shipping, payment fees, packaging and other variable costs.
Break-even ROAS and CPA
The minimum ROAS and maximum cost per order.
Target ROAS
The ROAS needed to keep your chosen profit margin.
Percentage format
Ready to paste into target ROAS bidding.
How to use the Break-Even ROAS Calculator
Enter the price
Average order value or product price.
Add your costs
Product cost, shipping, fees and other per-order costs.
Set a profit goal
The margin you want to keep after ads.
Use the target
Enter the target ROAS in your ad platform.
Break-even ROAS formula
Break-even ROAS = 1 ÷ contribution margin, where contribution margin = (price − variable costs) ÷ price. A $100 product with $60 of costs has a 40% margin, so break-even ROAS is 2.5. At a 2.5× ROAS you spend $40 in ads to make $40 of margin.
Target ROAS for profit
To keep a profit after ads, subtract the desired profit from the margin before dividing: target ROAS = 1 ÷ (margin − desired profit margin). With a 40% margin and a 10% profit goal, the target is 1 ÷ 0.30 = 3.33×.
Pro tips from our PPC and SEO team
- Include every variable cost, especially shipping and payment fees.
- Calculate separately for products with very different margins.
- Factor in repeat purchases with the LTV calculator.
Break-Even ROAS Calculator: frequently asked questions
What is break-even ROAS?
It is the ROAS at which ad-driven revenue exactly covers the cost of the products sold and the ad spend.
Why is my break-even ROAS so high?
Low margins push it up. A 20% margin needs a 5× ROAS just to break even.
Should I include fixed costs?
Break-even ROAS normally uses variable per-order costs. Fixed costs such as rent are covered by total profit across all orders.
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