Break-Even ROAS Calculator
Find the lowest ROAS your ads can run at without losing money. Enter three numbers and you're done.
What is break-even ROAS?
ROAS (return on ad spend) is how much revenue you get back for every $1 you spend on ads. Break-even ROAS is the point where your ads pay for themselves and nothing more. If your ROAS is above it, your ads are making you money. If it's below, you're losing money on every sale.
Formula: Break-even ROAS = Order value ÷ (Order value − Product cost − Shipping cost)
Quick questions
What's a good ROAS?
Anything above your break-even ROAS is profitable. The further above it you are, the more you keep from each sale.
Should I include sales tax?
No. Sales tax goes to the state, so leave it out of your order value.
Why is my break-even ROAS so high?
Your product and shipping costs take up most of the order value. Raising prices, bundling products to increase order value, or lowering costs will bring it down.
More free tools for e-commerce brands
Free Shipping Threshold Calculator: find the "free shipping over $X" amount that pays for itself.
Email Marketing ROI Calculator: see how much profit your email marketing makes for every $1 you spend.
Ads not hitting break-even?
I help US e-commerce brands run profitable paid ads.