Calculate the return on ad spend needed to cover product costs, fees and campaign spend.
Use the Break-even ROAS Calculator
What this tool helps you check
A revenue target alone cannot tell you whether a campaign is profitable. Enter the selling price, direct product cost, shipping, payment fees and other costs per order. The calculator derives contribution per order, contribution margin and the minimum revenue-to-ad-spend ratio before advertising profit turns positive.
How to use it
- Add the actual price and variable costs for one typical order
- Enter an optional ad budget and planned order value
- Compare break-even ROAS with the return your campaign achieves
Interpreting the result
A break-even result is a floor, not a target for growth. Include returns, discounts and agency fees when they change the contribution margin. A campaign at exactly break even leaves no profit for overhead or uncertainty.
Limitations and next steps
Does break-even ROAS include profit?|No. It is the ratio where contribution after ad spend reaches zero. Set a higher target when the business needs profit or must cover fixed overhead.
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