Break-Even ROAS Calculator
Calculate the minimum Return on Ad Spend (ROAS) needed to avoid losses. Perfect for dropshipping, e-commerce, and any business running paid advertising campaigns.
Break-Even ROAS Calculator
Enter your product details to calculate your break-even ROAS.
Your Break-Even ROAS
This is the minimum ROAS you need to cover your costs and avoid losses.
How to Use the Calculator
Follow these simple steps to calculate your break-even ROAS.
Enter your product price
Input the selling price of your product or service.
Add all cost components
Include COGS, shipping, transaction fees, and taxes.
Review your calculations
The tool automatically calculates your gross margin.
See your break-even ROAS
Get instant results with profit/loss interpretation.
Compare with actual performance
Use this benchmark against your actual ROAS from ad platforms.
Save your calculations and compare them regularly as your costs change.
Break-Even ROAS Calculator Guide
What Is Break-Even ROAS?
Break-Even Return on Ad Spend (ROAS) represents the minimum revenue-to-ad-cost ratio required to avoid financial loss on a campaign.
Why Break-Even ROAS Matters
Key Inputs
To calculate break-even ROAS, you'll need: Selling Price, Product Cost, Shipping Costs, Transaction Fees, and Taxes (if applicable).
Formula: How to Calculate Break-Even ROAS
Option A – Based on Gross Margin %
Option B – Based on Revenue & Costs
Example Calculation:
• You sell a product for $30
• Your total costs (COGS + shipping + fees) = $20
• Gross margin = (30 – 20) / 30 = 33.3%
• Break-Even ROAS = 1 ÷ 0.333 = ~3.0×
You need a ROAS of 3.0× just to avoid losing money.
Advanced Use Cases
Add Customer Lifetime Value (CLV) for repeat-purchase brands
Adjust for VAT for international sales
Combine with funnel conversion rates for paid media forecasting
Use for pricing strategy, not just advertising optimization
Frequently Asked Questions
Everything you need to know about break-even ROAS calculations