Break-even ROAS Calculator
Use this break-even ROAS calculator to understand how much you can spend on ads before an order stops being profitable.
How the Break-even ROAS Calculator works
Use this break-even ROAS calculator to understand how much you can spend on ads before an order stops being profitable.
Who should use it
Best for ecommerce sellers running Meta, Google, TikTok, Amazon, or marketplace ads.
Break-even ROAS formula
Allowable ad spend = revenue minus non-ad costs. Break-even ROAS = revenue divided by allowable ad spend.
Transparent methodology
Costs included in this model
- Selling price
- Product cost
- Shipping cost
- Platform fees
- Payment fees
- Other cost
Sources & review
Defaults are editable estimates. Verify plan, country, currency, category, and provider-specific charges before making a decision.
Last reviewed:
Break-even ROAS example
If a $60 product has $35 in non-ad costs, allowable ad spend is $25 and break-even ROAS is 2.4. A higher target ROAS leaves room for profit.
Break-even ROAS mistakes to avoid
- Using gross revenue as available ad budget.
- Ignoring fees when setting ROAS targets.
- Treating break-even ROAS as the goal instead of the floor.
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FAQ
What is break-even ROAS? +
Break-even ROAS is the return on ad spend where your ad spend consumes all profit before ads. Above that point, the order can be profitable.
How is break-even ROAS calculated? +
Break-even ROAS equals revenue divided by allowable ad spend. Allowable ad spend is revenue minus non-ad costs.
What is a good ecommerce profit margin? +
Many ecommerce products land between 10% and 30% net margin, but the right target depends on category, fulfillment model, return rate, and ad costs.
What costs should I include in ecommerce profit? +
Include product cost, platform fees, payment processing, shipping, packaging, ads, refunds, taxes or VAT when relevant, and any product-level operating costs.
Does this calculator include taxes? +
The general ecommerce calculator includes an optional tax or VAT percentage. Other calculators focus on product economics and fees, so add tax as an other cost if needed.
Are platform fees accurate? +
The calculators use editable fee inputs and common defaults where useful. Always check your own marketplace, payment provider, plan, country, and currency.