Breakeven ROAS Calculator

Instantly calculate the minimum return on ad spend you need to cover all costs and stay profitable. Enter your numbers and make data-driven decisions with confidence.

Selling Price per Unit (including tax) ($)
Cost of Goods Sold per Unit ($)
Shipping Cost per Unit ($)
Transaction Fees (%)
Other Variable Costs per Unit ($)
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Total Cost per Unit

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Profit Margin (%)

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Break-Even ROAS

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Why is Breakeven ROAS Important?

ROAS (Return on Advertising Spend) measures how effectively your ads generate revenue. Your breakeven ROAS is the point where the revenue from a sale exactly covers all costs—meaning you're not losing money, but you're not making a profit yet either. Staying above this number ensures you're running profitable ad campaigns.

How is Breakeven ROAS Calculated?

The formula for breakeven ROAS is:
Revenue per Product ÷ (Revenue per Product−Total Costs per Product) = Breakeven ROAS

For example, if you sell a product for $50 and your total costs (COGS, shipping, transaction fees) add up to $30, your breakeven ROAS would be 2.5. That means you must maintain a ROAS above 2.5 to stay profitable.

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