[ Free tool · Ads and growth ]
Break-even ROAS calculator
Find the lowest ROAS at which your ads stop losing money. Enter your selling price and costs, or just your margin.
Break-even ROAS
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Contribution margin
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Enter your price and costs, or your margin.
Runs in your browser. Nothing you type is sent to Be12 Media.
[ How to use it ]
How to use the Break-even ROAS Calculator
- Enter the average selling price of an order.
- Enter the cost of the product plus every per-order cost: shipping, packaging, payment gateway fees, returns.
- Read your contribution margin and break-even ROAS. Any campaign below it loses money on each sale.
[ Explained ]
How break-even ROAS works
- Margin
- (Selling price − per-order costs) ÷ selling price
- Break-even ROAS
- 1 ÷ margin
- Example
- Price 1,000, costs 600: margin = 40%, break-even ROAS = 1 ÷ 0.40 = 2.5x.
Break-even ROAS covers the ad spend on that sale only. To pay for salaries, rent and profit, aim above it. Repeat customers can justify a lower first-order ROAS; check your lifetime value with the LTV calculator.
[ FAQ ]
Questions about the Break-even ROAS Calculator
Should I include GST in the price?
No. Use the price after GST and discounts, because the tax is not money you keep.
What costs belong in the per-order cost?
Everything that grows with each order: product or manufacturing cost, packaging, shipping, cash-on-delivery or payment gateway fees, marketplace commission and the average cost of returns.
Can a campaign below break-even still be worth it?
Sometimes, if customers reliably buy again. Then judge the campaign on customer lifetime value against acquisition cost, not on first-order ROAS.
[ An invitation ]
Begin with a conversation
Numbers not where you want them? Tell us about your campaigns and we’ll come back with a clear next step, not a sales pitch.
Thank you. Your enquiry is on its way.
We’ll reply within one business day with a clear next step.