Seller target-profit advertising tool
Target ROAS Calculator
Calculate the target ROAS, ACOS and maximum ad spend needed to keep your desired profit per sale.
- 100% Free
- No Sign Up
- Instant Calculation
Your inputs
Exclude advertising: Enter every non-ad per-sale cost in the matching group. The calculator reserves the remaining contribution profit for your selected target profit and ad spend.
Your results
Calculation Breakdown
Target ROAS preserves the profit you selected after advertising. It is usually higher than break-even ROAS, which assumes final profit is zero.
How to use
- 1
Enter your sale
Add your selling price and non-advertising costs.
- 2
Set your target profit
Enter how much profit you want to keep after advertising.
- 3
Find your target ROAS
See the ROAS, ACOS and maximum ad spend needed to protect your target profit.
What this tool does
Target ROAS Calculator is platform-independent and helps you keep a selected profit after advertising. It differs from Break-even ROAS: break-even assumes final profit is zero, while Target ROAS reserves the profit you enter and is therefore usually higher. Results are estimates; use a marketplace-specific calculator when rules or fee structures vary by platform.
- ✓Target ROASThe return on ad spend needed to preserve your selected target profit.
- ✓Target ACOSThe maximum advertising cost of sales percentage allowed while keeping the target profit.
- ✓Maximum Ad SpendThe maximum advertising cost per sale that still leaves your target profit.
- ✓Pre-ad Contribution ProfitSelling price minus product and other variable costs before advertising.
- ✓Target Profit MarginYour selected target profit expressed as a percentage of selling price.
Formula & assumptions
Maximum Ad Spend = Selling Price − Product Cost − Marketplace/Payment Fees − Fulfillment/Shipping − Other Variable Costs − Target Profit; Target ROAS = Selling Price ÷ Maximum Ad Spend.
- Enter non-ad per-sale costs only. Marketplace/payment, fulfillment/shipping and other variable costs are separate seller inputs.
- Target ROAS preserves the selected target profit after advertising; Break-even ROAS instead assumes final profit is zero.
Frequently asked questions
What is target ROAS?
Target ROAS is the revenue return on advertising needed to keep the profit per sale that you selected after advertising cost is deducted.
How is target ROAS calculated?
The calculator divides selling price by the maximum ad spend left after product cost, other variable costs and your target profit are deducted.
What is the difference between target ROAS and break-even ROAS?
Break-even ROAS assumes final profit is zero. Target ROAS reserves the target profit you enter, so it uses a smaller allowable ad spend.
Why is target ROAS usually higher than break-even ROAS?
Because less advertising spend is available once some profit must remain. Lower allowable spend means more revenue is required per advertising dollar.
What is target ACOS?
Target ACOS is the maximum advertising cost of sales percentage that still leaves your selected target profit.
What does a 3x ROAS mean?
A 3x ROAS means three dollars in revenue are generated for each dollar spent on advertising. Whether that is profitable depends on the costs and profit target you enter.
How much profit should I target per sale?
There is no universal target. It depends on your business, product, fixed overhead, cash-flow needs, growth goals and the risks you want to cover.
What costs should I include?
Include product cost and all non-advertising per-sale costs, such as marketplace and payment fees, shipping, packaging, fulfillment, storage and other variable costs.
What happens if my target profit is too high?
When the selected target leaves no money for advertising, maximum ad spend, Target ROAS and Target ACOS return a safe zero state with a short explanation.
Can I use this calculator for Amazon, Shopify, Etsy and eBay?
Yes, the formula is general. Platform fee structures can differ, so include accurate non-advertising costs or use the corresponding Profivexa marketplace calculator when available.