Break-Even ROAS Calculator

Discover the minimum ROAS you need to break even on ads across Facebook, Google, TikTok, and more.

Calculate Your Break-Even ROAS

Sale Price ($)

Product Cost / COGS ($)

Additional Costs (shipping, fees, etc.) ($)

What is Break-Even ROAS?

Break-Even ROAS (BEROAS) is the minimum Return on Ad Spend where your sales just cover your product cost and ad spend. It’s the threshold between profitable and unprofitable advertising campaigns.

Understanding your break-even point helps you make smarter bidding decisions and avoid campaigns that lose money despite appearing successful.

How It Works

Break-Even ROAS = Sale Price ÷ (Sale Price – COGS)

Where:

Sale Price: The price you sell your product for
COGS: Cost of Goods Sold (product cost + shipping + packaging + platform fees)

Example Calculation

Scenario 1: Basic Calculation

Sale Price: $40

COGS: $20

Break-Even ROAS: $40 ÷ ($40 – $20) = 2.0

This means you need at least $2 in revenue for every $1 spent on ads to break even.

Scenario 2: Including Additional Costs

Sale Price: $100

Product Cost: $40

Shipping + Fees: $25

Total COGS: $65

Break-Even ROAS: $100 ÷ ($100 – $65) = 2.86

Why This Matters

See the Truth Behind ROAS: A ROAS of 3 might look good, but if your break-even is 2.5, your actual profit margin is thin.

Optimize Smarter: Know which campaigns are truly profitable vs. those just covering costs.

Budget With Confidence: Set realistic ROAS targets based on your actual margins.

Best Practices

Always include all relevant costs (COGS + shipping + platform fees + packaging)

Calculate break-even ROAS for each product category, not just your average

Use this as a baseline—aim for ROAS 20-30% above break-even for healthy profits

Re-calculate when costs change (supplier price increases, shipping rate changes, etc.)

Ready to Grow with Modonix?

Let’s turn your digital goals into measurable results. Whether you’re scaling an eCommerce brand or refining your online strategy, Modonix is here to help.

Leverage our methodology for success. Measure your performance; Identify improvements using proven strategies; Implement; then Thrive.

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