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Calculate Your Break-Even ROAS

Find the minimum Return on Ad Spend you need to cover all costs and break even on your Meta ad campaigns.

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Fill in your costs and click Calculate to see your break-even ROAS.

What is Break-Even ROAS?

Break-Even ROAS is the minimum Return on Ad Spend your campaigns need to achieve so that every dollar you spend on advertising is exactly covered by the revenue it generates. At break-even, you are not making a profit, but you are not losing money either.

Break-Even ROAS = 1 / ((AOV - COGS - Fees) / AOV)

In simpler terms: Break-Even ROAS = 1 / Profit Margin. If your profit margin (after product costs, shipping, and fees) is 50%, your break-even ROAS is 2.0x. Any ROAS above that threshold means you are profitable.

Worked Example

InputValue
Average Order Value (AOV)$100
Cost of Goods (COGS)$40
Fees (shipping, processing)$10
Profit per sale$100 - $40 - $10 = $50
Break-Even ROAS1 / ($50 / $100) = 2.0x

This means you need to generate at least $2 in revenue for every $1 spent on ads to break even. A ROAS of 3.0x would mean $1 profit for every $1 of ad spend.

Why Use This Calculator?

  • ✓ Know your exact profitability threshold before spending on ads
  • ✓ Set data-driven ROAS targets for your campaigns
  • ✓ Factor in product costs, shipping, and processing fees
  • ✓ Compare scenarios with different pricing or cost structures

Frequently Asked Questions

Most e-commerce brands target 3x-5x ROAS, but the right target depends entirely on your margins. Use this calculator to find YOUR break-even point, then aim for 50-100% above it.

Regular ROAS tells you how much revenue your ads generated per dollar spent. Break-even ROAS tells you the minimum ROAS you need to not lose money. It accounts for your product costs, shipping, and fees.

Yes. Break-even ROAS already factors in your ad spend. A 2.0x break-even ROAS means you need $2 revenue per $1 ad spend, and after subtracting product costs and fees, you break even.

You are losing money on that campaign. Consider improving your ad creative, refining targeting, raising prices, reducing COGS, or pausing the campaign.

No. Prospecting campaigns (reaching new customers) will typically have lower ROAS than retargeting campaigns. Set different targets for different funnel stages.

Recalculate whenever your costs change — new supplier, shipping rate change, fee adjustment, or pricing update. Also recalculate when launching products with different margins.

Learn more: Break-Even ROAS · ROAS Explained · Profit Margin

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