ROAS Breakeven Calculator
ROAS Breakeven
To be profitable, your ROAS must be greater than 0.00
How to use this calculator?
1. Enter your selling price and your costs per order (purchase, shipping, bank fees in %, other costs)
2. The minimum ROAS is: selling price excl. VAT ÷ margin excl. VAT per order
3. Ensure your campaigns exceed this threshold
Quick answer
How do you calculate break-even ROAS?
Break-even ROAS is the selling price excluding VAT divided by the net margin (net price minus all net costs per sale). Formula: break-even ROAS = net price / (net price - net costs) = 1 / margin rate. Example: €60 including 20% French VAT is €50 net; with €20 of net costs the margin is €30, so 50 / 30 = 1.67.
| Net selling price | Net costs | Net margin | Break-even ROAS |
|---|---|---|---|
| €50.00 | €10.00 | €40.00 | 1.25 |
| €50.00 | €20.00 | €30.00 | 1.67 |
| €50.00 | €25.00 | €25.00 | 2.00 |
| €50.00 | €30.00 | €20.00 | 2.50 |
| €100.00 | €40.00 | €60.00 | 1.67 |
| €100.00 | €75.00 | €25.00 | 4.00 |
About the ROAS Breakeven Calculator
What is it?
The ROAS Breakeven calculator determines the minimum return on ad spend (ROAS) below which your campaigns are no longer profitable.
Why use it?
Most advertisers optimize their campaigns without knowing their actual profitability threshold. Without this number, you don't know whether your campaigns are making or losing money.
How does it work?
ROAS Breakeven is calculated by accounting for your selling price, purchase costs, shipping fees, payment processing fees and other variable costs. Formula: Breakeven ROAS = 1 ÷ Net Margin.
Usage tips
- Include every variable cost in the calculation (returns, customer service, packaging...)
- A ROAS of 3 means you generate €3 in revenue for every €1 spent on ads
- Your target ROAS must exceed your ROAS Breakeven to be profitable
- Recalculate your ROAS Breakeven whenever prices or costs change
- On Meta Ads, monitor ROAS by audience - results vary significantly
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