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Break Even ROAS Calculator

Calculate the ROAS you need to break even after product cost, shipping, platform fees, payment fees, and overhead.

Enter your unit economics

Use order-level costs before ad spend. The result tells you the minimum ROAS ads need to hit before repeat purchases.

Break-even ROAS

2.25x

Max ad spend

$22.20

Pre-ad margin

44.4%

Net profit

$22.20

Cost breakdown

Revenue
$50.00
Variable platform/payment fees
$6.50
Product cost
$14.00
Shipping cost
$6.00
Fixed fees
$0.30
Overhead
$1.00
Contribution before ads
$22.20

Formula notes

Break-even ROAS = revenue / maximum ad spend before profit reaches zero.

If contribution before ads is negative, paid acquisition cannot break even on the first order.

This is a planning calculator. Actual ad profitability depends on attribution windows, refunds, repeat purchases, and lifetime value. Last config update: 2026-07-06.

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How to use this calculator

Use Break Even ROAS Calculator before listing, reordering, or launching ads. Start with conservative costs, then test how price and fees change profit.

  • Enter one product or order model.
  • Replace default rates with your actual account rates.
  • Compare net profit, margin, and break-even outputs.
  • Use related calculators for deeper platform-specific checks.

Formula

Break Even ROAS Calculator follows a simple seller economics model: revenue minus product cost, shipping, platform fees, payment fees, advertising, and other order-level costs.

  • Revenue is based on selling price and buyer-paid charges.
  • Costs include product, shipping, fees, ads, and overhead where relevant.
  • Margin is net profit divided by revenue.
  • Break-even metrics estimate the point where profit reaches zero.

Example workflow

A seller can enter a target price, product cost, shipping cost, and fee rate, then compare profit margin before deciding whether the item deserves more research.

  • Check the default result first.
  • Change product cost or fee rate to match your supplier and marketplace.
  • Try a higher and lower selling price.
  • Use the result to reject weak products faster.

Common mistakes

The most common issue is treating marketplace revenue as profit. Break Even ROAS Calculator helps expose hidden costs before they become expensive inventory mistakes.

  • Forgetting shipping, returns, or ad costs.
  • Using a generic fee rate for every category.
  • Ignoring fixed fees on low-priced products.
  • Making sourcing decisions before checking break-even price.

Related seller guides

FAQ

Is a lower break-even ROAS better?

Yes. A lower break-even ROAS means you can spend more on ads relative to revenue and still avoid losing money.

Should I include repeat purchases?

For a conservative first-order calculation, do not include them. For mature stores, compare this result with customer lifetime value.

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