Free Breakeven ROAS calculator (BEROAS)
Stop burning ad spend. Instantly calculate your Breakeven ROAS and profit margins. The essential BEROAS tool for scaling Shopify dropshipping, TikTok Ads, and Meta campaigns.
Running a subscription business? Switch on MRR / Subscription Model to factor in recurring revenue and unlock true lifetime profitability.
Unit Economics
The final price the customer pays.
Cost to produce or acquire one unit.
Includes packaging, shipping, and handling.
Payment gateway fees (e.g., Stripe).
Any extra costs (packaging, software, etc).
Value-added tax or sales tax.
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Breakeven ROAS Calculator for Dropshipping & DTC
Calculate your exact break-even ROAS and profitability targets instantly. The essential financial modeling tool for Facebook Ads, TikTok Ads, and Google Ads media buyers.
The Breakeven ROAS Formula
Your Break-Even ROAS (Return on Ad Spend) defines the exact line between making money and losing it.
Example: You sell a product for $50. Your COGS + Shipping + Fees are $30. Your Profit Margin is $20.
Breakeven ROAS = 2.5 ($50 / $20).
Scale or Kill Rules
- ✓Scale AggressivelyActual ROAS > Breakeven + 20%. You are profitable. Increase budget daily.
- ✕Kill the AdActual ROAS < Breakeven. You are losing money. Turn it off immediately.
- ↑Increase AOVAdd bundles to increase margin. This lowers your Breakeven ROAS goal.
Frequently Asked Questions
Break-Even Return On Ad Spend (ROAS) is the point where your revenue from advertising exactly covers your product and advertising costs. A ROAS above this number means you're profitable; below it means you're losing money.
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