Break-Even ROAS Calculator
Find out the minimum ROAS you need to be profitable. Enter your product costs to calculate your break-even point, max CPA, and profit targets.
How to Find Your Break-Even ROAS
Enter Product Price
Input your product's selling price to the customer.
Add Your Costs
Enter cost of goods, shipping, and other per-unit expenses.
Get Your Targets
See your break-even ROAS, max CPA, profit margin, and ROAS targets by goal.
Frequently Asked Questions
What is break-even ROAS?
Break-even ROAS is the minimum Return on Ad Spend you need to cover all your costs (product cost, shipping, fees) without losing money. It's calculated as: Break-Even ROAS = Selling Price ÷ (Selling Price - Total Costs). If your ROAS exceeds this number, you're profitable. Below it, you're losing money on every sale.
How do I calculate my break-even ROAS?
Enter your product selling price, cost of goods (COGS), shipping cost, and any other per-unit costs (transaction fees, packaging, etc.). The calculator divides your selling price by the profit per unit to give you the minimum ROAS needed to break even.
Why is break-even ROAS important for ecommerce?
Without knowing your break-even ROAS, you can't determine if your ad campaigns are actually profitable. A 3x ROAS sounds great, but if your margins are thin, you might still be losing money. Break-even ROAS gives you a clear profitability threshold for every ad campaign.
What costs should I include in the calculation?
Include all variable costs per unit: (1) Cost of goods/manufacturing, (2) Shipping and fulfillment, (3) Payment processing fees (typically 2.9% + $0.30), (4) Packaging materials, (5) Returns allowance (typically 5-15% of sales), (6) Any per-order operational costs. Do not include fixed costs like rent or salaries.
What is a good profit margin for running ads?
For profitable paid advertising, aim for at least 30-40% profit margin before ad spend. This gives you room to acquire customers at a reasonable cost. Margins below 20% make it very difficult to run profitable ads unless you have high average order values or strong customer lifetime value.
How does break-even ROAS relate to max CPA?
Max CPA (Cost Per Acquisition) is the profit per unit — it's the maximum you can spend to acquire one customer and still break even. Break-Even ROAS = Selling Price ÷ Max CPA. Both metrics help you set boundaries for your ad campaigns.
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