Campaign Parameters
Enter values to calculate
Max ad spend allowed per sale
Profit margin before ad spend
What is Break-Even ROAS?
Break-Even Return on Ad Spend (ROAS) is the minimum ratio of revenue generated to ad spend required for your marketing efforts to cover the costs of the product and the advertising itself. If your actual ROAS is lower than your break-even ROAS, you are losing money on every sale.
How to use this calculator:
1. Enter your Sale Price: The amount the customer pays you.
2. Enter your Product Cost: What it costs you to manufacture or buy the item.
3. Enter Other Variable Costs: Include shipping, packaging, and payment processing fees.
4. The calculator will instantly show you the minimum ROAS you need to maintain in your ad dashboard (like Meta Ads or Google Ads) to avoid a loss.
Example Scenario
If you sell a product for $100 and your total cost (COGS + shipping) is $40, your gross profit is $60. To break even, your ad spend cannot exceed $60. Therefore, your break-even ROAS is $100 / $60 = 1.67x.