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Break-even ROAS Calculator

Find the minimum ROAS your campaign needs to stop losing money. Enter one product's selling price and variable costs to calculate break-even ROAS, maximum CPA, and profit per order.

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Break-even ROAS (BEROAS)

Your campaign must return at least in revenue for every spent on ads to break even.

Max CPA
Pre-ad margin
Non-ad costs

One-order revenue split

How much of each sale is already committed

Product
Shipping
Payment fees
Other
Maximum ad spend (Max CPA)

At your tested campaign ROAS

profit per order loss per order · margin

How to calculate break-even ROAS

Break-even ROAS starts with the contribution left from one order before advertising. That contribution is also the most you can pay to acquire the order without losing money.

Step 1: Max CPA
Max CPA = Selling price − Non-ad costs
Step 2: BEROAS
Break-even ROAS = Selling price ÷ Max CPA

Example

A product sells for 59.99. Product, shipping, payment, and other variable costs total 25.03, leaving a maximum CPA of 34.96. Dividing 59.99 by 34.96 gives a break-even ROAS of 1.72×. A campaign above 1.72× makes money per order; one below it loses money.

Research the product before you price the test

Use Eachspy to compare product prices, active creatives, landing pages, and advertiser history. Then bring your own supplier and fulfilment costs back here to set a realistic acquisition ceiling.

Product library search for USD products between $20 and $60 that already run Facebook ads

Break-even ROAS questions

What is break-even ROAS?

Break-even ROAS is the minimum return on ad spend a campaign must achieve before an order stops losing money. It is based on the revenue left after product and other variable costs, but before advertising cost.

How do you calculate break-even ROAS?

First subtract product cost, shipping, payment fees, and other variable costs from the selling price to get your maximum break-even CPA. Then divide the selling price by that maximum CPA.

Which costs should I include?

Include every cost that changes when you fulfil another order: cost of goods, shipping, packaging, fulfilment, payment processing, per-order app fees, and expected refunds or discounts. Put anything not listed in the other variable cost field.

Is a lower break-even ROAS better?

Usually, yes. A lower break-even ROAS means more contribution margin is available for advertising. It gives a campaign more room to remain profitable as acquisition costs rise.

What happens when my costs exceed the selling price?

There is no viable break-even ROAS because the order loses money before advertising. Raise the selling price or reduce non-advertising costs before spending on acquisition.

What is the difference between ROAS and break-even ROAS?

ROAS describes an actual or planned campaign's revenue divided by ad spend. Break-even ROAS is the profitability threshold for your unit economics. Actual ROAS must be above that threshold to produce profit per order.

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