Break-even ROAS Calculator

ROAS (return on ad spend) tells you how much revenue you earn for every dollar spent on ads. Break-even ROAS is the minimum ROAS where ad spend equals your profit contribution — below that number, campaigns lose money after product costs.

Business model
Revenue per sale, before ad costs
Profit as a percentage of value
Optional: shipping, payment fees, etc.

Break-even ROAS

The formula

Break-even ROAS = AOV ÷ (AOV × margin% − fixed cost per order)

With no fixed per-order costs, this simplifies to 1 ÷ margin%. A 50% margin means you need at least 2.0× ROAS to break even.

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