Break-Even ROAS Calculator
The minimum ROAS your margins demand — from price, costs and fees, before a single ad runs.
Formula
Disclaimer: Fee schedules change and vary by category, region and seller status — verify on the platform's current fee page before pricing. Not financial advice.
Disclaimer: This tool is for general informational and estimation purposes only and is not professional financial, tax, accounting or legal advice. All figures are estimates — verify with a qualified professional before making decisions. Read the full disclaimer.
Need break-even roas calculator results fast? Skip the spreadsheet and get a clear, defensible answer in one step — free, private and instant, recalculating live as you change any input.
About Break-Even ROAS Calculator
Most ad accounts celebrate the wrong ROAS because nobody computed the break-even first: it's simply price ÷ contribution margin. The default $60 product with $29 of true costs (COGS, fulfillment, fees) carries a $31 margin → 1.94× break-even — meaning the '3× ROAS' the dashboard brags about banks just $11 per order, and a 'great' 2.5× campaign on a thinner-margin SKU might be losing money on every conversion. The two derived numbers run your account: TARGET ROAS (price ÷ (margin − desired profit) — the bid-strategy input that encodes your profit goal rather than vanity) and MAX CPA (= the contribution margin itself — the most you can pay for a customer at break-even, the number that translates directly into Facebook/Google CPA bid caps). Per-SKU computation matters: blended-account ROAS targets quietly subsidize loss-making products with winners' margins. What the simple version omits — deliberately, so you can add it consciously: RETURNS (a 10% return rate inflates true break-even ~11%; apparel at 25%+ returns transforms the math), LTV (a consumables brand with 40% repeat-rate can run FIRST-ORDER ROAS below break-even profitably — but only with measured cohort data, not hope), and CREATIVE/agency costs that live outside the platform's ROAS entirely. The discipline: compute per-SKU break-even quarterly, set platform targets 20-30% above it, and let LTV-based exceptions be explicit, written-down bets.
How to use Break-Even ROAS Calculator
- 1Enter Selling price (AOV), Product cost (COGS), Shipping + fulfillment, Payment/platform fees (%), Desired profit per order into the Break-Even ROAS Calculator.
- 2The result is computed automatically using Break-even ROAS = price ÷ contribution margin ; margin = price − COGS − shipping − fees ; max CPA = the margin itself — there is no button to press; it updates live as you type.
- 3Change any input to model a different scenario, then use “Copy result link” to share the exact numbers.
Why use Break-Even ROAS Calculator?
- ✓Computes break-even roas calculator instantly with the correct formula — no spreadsheet needed
- ✓100% free and unlimited, with no sign-up, login or paywall
- ✓Runs entirely in your browser, so the figures you enter are never uploaded or stored
- ✓Shows the formula, a live worked example and references so you can defend the number
Frequently asked questions
Dashboard me 3x ROAS hai — main profit me hoon na?+
Pata nahi — break-even ke bina 3× ka koi matlab nahi: 1.94× break-even (defaults) par 3× accha hai ($11/order profit); 2.8× break-even wale luxury-shipping SKU par wahi 3× lagbhag zero hai. Pehle har SKU ka break-even nikaalo (yeh tool), phir dashboard padho. Blended account-ROAS sabse bada jhooth hota hai — winners losers ko chhipa lete hain.
Returns ko is math me kaise jodein?+
Margin ko effective karo: 10% return rate par realized revenue ~90% par costs (shipping dono taraf, restocking) poore — practical shortcut: margin × (1 − return rate × 1.3) use karo, ya seedha price field me realized-AOV daalo. Apparel/footwear me returns hi decide karte hain ki ads chal sakte hain ya nahi — wahan return-adjusted break-even ke bina spend karna andhera hai.
First-order loss par kab chalana sahi hai?+
Sirf MEASURED LTV ke saath: 60-90 din ke cohort me repeat-revenue documented ho (subscriptions, consumables, refills) to first-order ROAS break-even se neeche bhi rational hai — payback-period define karke (60-90 din standard). 'Brand banegi to log laut aayenge' measurement nahi, prarthana hai. LTV-bet ko likho: kis cohort par, kitna allowable loss, kab review.
Target ROAS bid strategy me kya number daalein?+
Is tool ka targetRoas output — apne profit-goal ke saath — daalo, break-even nahi: break-even par bid karne se algorithm break-even DELIVER karega (woh wahi optimize karta hai jo aap maangte ho). Buffer bhi rakho: attribution ke jhol (view-through, returns) ke liye target ko break-even se 25-30% upar. Scaling me target dheere ghatao, kabhi bhi ek jhatke me nahi — algorithm ka learning reset ho jata hai.
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