Cross-Border Seller Calculators
Break-Even ROAS Calculator
Calculate the minimum return on ad spend needed to avoid losing money on a sale.
Calculator inputs
Calculation results
Enter your inputs, then select Calculate to view the results.
Formula
Break-even ROAS formula
Break-even ROAS equals selling price divided by pre-advertising profit.
How to use this calculator
- Enter commercial inputs
Enter the selling price and all non-advertising costs so the calculator can determine pre-ad profit.
- Compare ROAS thresholds
Review break-even ROAS against your current and target return on ad spend.
- Set a safer target
Use the threshold for planning and leave a margin for returns, taxes, and other unmodeled costs.
Worked example
Example inputs
- Selling price
- $40
- Pre-ad profit
- $10
Calculation
$40 ÷ $10 = 4.00.
What the result means
4.00 break-even ROAS.
How to use the result
ROAS above 4.00 is profitable before unmodeled costs; 4.00 breaks even; below 4.00 loses money.
Common mistakes
- Confusing ROAS with profit margin.
- Assuming the same ROAS target fits products with different margins.
FAQ
Frequently asked questions
Is a higher ROAS better?
A higher ROAS means less ad spend per dollar of revenue, but the right target depends on your margin and growth goal.