How is Break-Even ROAS calculated?

For a single purchase, the formula is: Price / (Price - Total Costs). For recurring models, it's: Price / Customer Lifetime Value. Our calculator handles this for you.

A 'good' ROAS depends on your profit margins. While a 4.0 is a common benchmark, a business with high margins might be profitable at a 3.0 ROAS, while one with low margins might need a 10.0+ ROAS.

What is the difference between ROAS and ACoS?

ROAS (Return on Ad Spend) measures revenue per ad dollar spent (Revenue / Ad Spend). ACoS (Advertising Cost of Sales) measures ad spend as a percentage of revenue (Ad Spend / Revenue). They are inverse metrics: ACoS = 1 / ROAS.

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Free Breakeven ROAS calculator (BEROAS)

Start with a $50 product and $20 COGS benchmark, then add fees, taxes, and shipping to find your exact Breakeven ROAS.

Check cost multiplier, pre-ad profit, and profit after ads before scaling Shopify, TikTok, Meta, or Google campaigns.

Breakeven ROAS

Minimum ROAS needed to cover all costs.

1.67x

Target ROAS

Cost Multiplier

2.50x

Price / costs

Pre-ad Profit

$30.00

Before Ad Spend

Unit Economics

Selling Price

The final price the customer pays.

Cost of Goods (COGS)

Cost to produce or acquire one unit.

Shipping & Fulfillment

Includes packaging, shipping, and handling.

Transaction Fees

Payment gateway fees (e.g., Stripe).

Other Costs

Any extra costs (packaging, software, etc).

VAT / Tax

Value-added tax or sales tax.

MRR / Subscription Model

Profit after ads

Based on $50.00 revenue and $20.00 costs per order.

Break-even profit$0.00

Break-even1.67x

Ad spend$30.00

Profit after ads$0.00

Profitable2.00x

Ad spend$25.00

Profit after ads$5.00

Scale target2.50x

Ad spend$20.00

Profit after ads$10.00

Break-even ACoS: 60.00%. Any ROAS above 1.67x leaves profit after ads.

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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.

Breakeven ROAS = Selling Price / Pre-ad Profit

Example: You sell a product for $50 and your COGS are $20. Your pre-ad profit is $30.
Breakeven ROAS = 1.67x ($50 / $30).

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.