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Break-Even ROAS Calculator

Enter your product price, COGS, fees, and shipping to find the minimum ROAS needed to break even and hit profit targets.

Inputs

What Is Break-Even ROAS?

Break-Even ROAS is the minimum return on ad spend required for an ad-driven sale to generate zero profit and zero loss. It is determined entirely by your unit economics — product cost, platform fees, and shipping.

Knowing your break-even ROAS is essential for setting realistic campaign targets. If your break-even is 3x, then targeting 2x ROAS means every sale from ads loses money. Targeting 5x gives you a comfortable profit margin.

This calculator also shows target ROAS at 20%, 30%, and 40% net profit margins so you can set goals that align with your business objectives.

Formula

Gross Margin % = (Price - COGS - Fees - Shipping) / Price
Break-Even ROAS = 1 / Gross Margin %
Target ROAS = 1 / (Gross Margin % - Target Profit %)

Worked example: Product price is $49.99, COGS is $15, platform fees are 2.9% ($1.45), shipping is $5.

Gross Margin = ($49.99 - $15 - $1.45 - $5) / $49.99 = 57.1%. Break-Even ROAS = 1 / 0.571 = 1.75x. Target ROAS @ 20% margin = 1 / (0.571 - 0.20) = 2.70x.

Benchmarks

Gross MarginBreak-Even ROASTypical Category
70%+1.4xDigital products, SaaS, high-margin supplements
50% - 70%1.4x - 2.0xApparel, beauty, home goods
30% - 50%2.0x - 3.3xElectronics, food & beverage
< 30%3.3x+Commodities, low-margin retail

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