Helpful Toolbox

Break-Even ROAS Calculator

Enter your price, product cost, and fees to see the exact ROAS your ads must hit before they make money โ€” plus the target ROAS for the profit you actually want. Everything runs privately in your browser.

๐Ÿ“– How it works & FAQ

What break-even ROAS actually tells you

ROAS (return on ad spend) is revenue divided by ad spend. Your break-even ROAS is the point where a campaign makes exactly zero profit: every dollar of margin the sale produces goes straight back into ads. The formula is break-even ROAS = 1 ÷ gross margin. Sell a product at a 35% margin after costs and fees, and you need 1 ÷ 0.35 = 2.86x ROAS just to break even. A 3x ROAS on that product is barely profitable; on a 60% margin product it would be excellent. The number only means something next to your margin.

This calculator works out your true margin first. It subtracts product cost, seller-paid shipping, the platform's transaction fee, and payment processing from the selling price, so the ROAS targets reflect what actually lands in your pocket, not just top-line revenue. Fee figures are approximate defaults you can edit; check the platform's current fees; estimates only, not financial advice.

How to use it

  1. Enter your selling price, your product cost, and any shipping or packaging you pay for.
  2. Pick a platform preset or type your own fee percentages — every fee field stays editable because platforms change their rates.
  3. Set a desired profit per order if you want a target ROAS rather than just the break-even floor.
  4. Read the cards: break-even ROAS, target ROAS, gross margin, and the most you can spend on ads per order (your break-even CPA). Everything updates as you type.

FAQ

Is a 4x ROAS good?
It depends entirely on margin. At a 25% margin, 4x is your break-even point — you earn nothing. At a 50% margin, 4x means roughly half your margin survives as profit. Compare any ROAS to your own break-even number, never to industry averages.
How is ACOS related to ROAS?
ACOS (advertising cost of sale, the Amazon PPC metric) is simply the inverse: ACOS = 1 ÷ ROAS. Your break-even ACOS equals your gross margin percentage, which this tool also shows.
Should I include overhead like software or salaries?
For a quick per-order decision, variable costs are enough. If you want ads to cover fixed overhead too, add a per-order share of it to the product cost field and the targets will tighten accordingly.
Is my data uploaded anywhere?
No. The calculator runs entirely in your browser — nothing you type is sent to a server or stored.