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Break-even ROAS calculator

Break-even ROAS is the point where ads neither make nor lose money. Any ROAS above it is profit; any ROAS below it is a loss.

Your figures
Result
Break-even ROAS
–
Most you can spend on ads per sale–
Profit margin–

The calculation runs in your browser; the values you enter are not sent anywhere.

Formula: Break-even ROAS = Selling price ÷ (Selling price − Cost per item)

How it is calculated

  1. Step 1

    In cost per item include the product or production cost, shipping, and payment and marketplace fees.

  2. Step 2

    Subtract that cost from the selling price: what remains is the most you can spend on ads for one sale.

  3. Step 3

    Divide the selling price by that amount. For a product at 1,000 with a cost of 600, break-even ROAS is 2.5 (example).

How to read the result

If your price includes tax, include it in the cost as well; both must be on the same basis.

If your return rate is high, your true break-even point is above the calculated one.

If customers buy again, a first sale slightly below break-even may be acceptable; that is a business decision.

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Other free tools

1. ROAS calculatorROAS shows how much revenue each unit of ad spend brings back. Enter your spend and the revenue that came from ads.2. CPM, CPC and CTR calculatorAll three metrics come from the same three figures: spend, impressions and clicks. Enter the values from your ad report.3. Ad budget calculatorA budget is worked out backwards from the goal: how many sales, messages or leads do you want per month, and what is the most you can pay for one?

Frequently Asked Questions

The most frequently asked questions about your industry and Adsaify solutions.

Why does break-even ROAS matter?
Avatar
It is the threshold you use to decide whether to pause an ad or raise its budget. Looking at ROAS without knowing this number is misleading.
How is it calculated from margin?
Can I use this threshold in an automation rule?

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