Seller advertising break-even tool
Break-even ROAS Calculator
Calculate the ROAS, ACOS and maximum ad spend per sale needed to avoid losing money on an order.
- 100% Free
- No Sign Up
- Instant Calculation
Your inputs
Add non-ad costs: Enter per-sale marketplace, payment, fulfillment, shipping and other variable costs. Do not add advertising cost here; Maximum Ad Spend is the amount available for it.
Your results
Calculation Breakdown
Break-even ROAS is the minimum return needed before advertising reduces this sale to zero profit. Aim above it to generate profit.
How to use
- 1
Enter your selling price
Add the revenue generated from one sale.
- 2
Enter your costs
Add product cost and all variable costs except advertising.
- 3
Find your break-even target
See the ROAS, ACOS and maximum ad spend needed to avoid losing money.
What this tool does
This platform-independent calculator finds the ad-spend limit for one sale before advertising turns the order unprofitable. It assumes all non-advertising per-sale costs are included in Product Cost or Other Variable Costs.
- ✓Break-even ROASThe minimum return on ad spend required for advertising to break even.
- ✓Break-even ACOSThe highest advertising cost of sales percentage you can sustain before profit reaches zero.
- ✓Maximum Ad SpendThe estimated maximum advertising cost you can spend to acquire one sale without losing money.
- ✓Contribution ProfitSelling price minus product and other variable costs before advertising.
- ✓Contribution MarginContribution profit expressed as a percentage of selling price.
Break-even ROAS is not usually the right profit target. A business normally needs ROAS above break-even to generate profit; taxes, returns, overhead and subscription costs can also affect actual profitability.
Formula & assumptions
Maximum Ad Spend = Selling Price − Product Cost − Marketplace/Payment Fees − Fulfillment/Shipping − Other Variable Costs; Break-even ROAS = Selling Price ÷ Maximum Ad Spend.
- Enter non-ad per-sale costs only; Maximum Ad Spend is the amount available for advertising before profit reaches zero.
- When contribution profit is zero or negative, Break-even ROAS and ACOS safely return 0 rather than Infinity.
Frequently asked questions
What is break-even ROAS?
Break-even ROAS is the minimum revenue return for each advertising dollar that lets a sale reach zero profit after the non-advertising costs you enter.
How is break-even ROAS calculated?
The calculator divides selling price by the maximum ad spend available before profit reaches zero. When there is no positive contribution profit, it returns 0 instead of infinity.
What does 2x ROAS mean?
A 2x ROAS means $2 in revenue for every $1 spent on ads. It is equivalent to a 50% ACOS.
What is break-even ACOS?
Break-even ACOS is the maximum advertising spend as a percentage of revenue that a sale can sustain before profit reaches zero.
What is the difference between ROAS and ACOS?
ROAS is revenue divided by ad spend, while ACOS is ad spend divided by revenue. They are inverse ways to express advertising efficiency.
Why is break-even ACOS equal to contribution margin?
At break-even, the maximum ad spend equals contribution profit. Dividing both by selling price produces the same percentage as contribution margin.
Should my target ROAS be higher than break-even ROAS?
Usually yes when the goal is to generate profit rather than merely break even. The appropriate buffer depends on your business and costs.
What costs should I include?
Include product, platform, payment, shipping, packaging, fulfillment, storage and other per-sale costs. Do not include advertising cost because this tool solves for its maximum amount.
What happens if my product has no contribution profit?
The sale is already at break-even or unprofitable before advertising. Maximum ad spend, break-even ROAS and break-even ACOS return 0.
Is break-even ROAS the same for Amazon, Shopify and other platforms?
The formula is general, but each platform can have different fees and cost structures. Include the relevant per-sale costs before comparing results.