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Break-Even ROAS Calculator

Marketing & SEO

Find the minimum return on ad spend you need to stay profitable on every sale.

Break-Even ROAS

2.08x

208%

Moderate margin

Gross margin

$24.00

Margin %

48.0%

Max ad cost / sale

$24.00

Formula: selling price ÷ gross margin. Any ROAS above this number is profit; below it, each sale loses money.

What is the Break-Even ROAS Calculator?

The Break-Even ROAS Calculator tells you the lowest return on ad spend at which a product still doesn't lose money. It subtracts product cost, shipping and other per-order costs from your selling price to get the gross margin, then divides the price by that margin. Any ROAS above this number is profit; below it, every sale costs you money.

How to use this tool

  1. Enter the product's selling price.
  2. Enter the cost of goods, shipping cost and any other per-order costs.
  3. Read your break-even ROAS and maximum ad cost per sale.
  4. Set your ad campaign's target ROAS above this number.

Frequently Asked Questions

Break-even ROAS = selling price ÷ gross margin, where gross margin = price − COGS − shipping − other costs. For example, a $50 product with a $20 margin needs a ROAS of 2.5 (250%).

Lower is better. Under 2 means a healthy margin that leaves room for ad testing; above 4 means thin margins and you'll need very efficient ads to profit.

Any cost tied to each order: payment processing fees, packaging, app fees per order or returns allowance.

No. Everything runs in your browser, so nothing is uploaded to a server.