A product sells for $50 with $20 of variable costs (COGS, fees, shipping), leaving $30 of margin. The break-even ROAS is 50 divided by 30, or 1.67x. Below 1.67x every sale loses money; above it, each extra unit of ad spend turns a profit.
ROAS break even calculator
Determine the exact Return On Ad Spend (ROAS) you need to be profitable. Our free calculator uses your product price and cost of goods to find your break-even point, helping you set realistic goals for your ad campaigns.
5/5 on ShopifyTrusted by 500+ brands
Example and tips
- A 1.67x break-even ROAS means you need $1.67 of revenue per $1 of ad spend just to cover product costs.
- To lower break-even ROAS, widen margin: raise price, cut COGS, or lift AOV. A higher margin makes ads easier to scale.
- Your real target sits above break-even. Add a profit buffer and your fixed costs before judging a campaign as healthy.
Kanal
What is Kanal?
Kanal turns WhatsApp into a sales channel for Shopify stores: abandoned cart recovery, order updates, campaigns to your segments, an AI chatbot and a shared inbox, with revenue tracked per message.
+90%open rate5/5on the Shopify App StoreFrom €89per month
See WhatsApp for Shopify in detailAbandoned cart flowFincut · WhatsAppLive
- Checkout abandonedTech T-shirt · Black, M
- Wait 1 hourSmart delay, quiet hours respected
- WhatsApp reminderProduct photo · 2 buttons
- Customer replyAnswered by the AI agent
- Order recovered#1042 · Paid in Shopify
Recovered this month€12,445.20
Your Shopify store on WhatsApp in 15 minutes
Leave your email and store address: a Kanal expert shows you the WhatsApp flows that pay for your catalog, cart recovery, order updates and campaigns.
How it works
Determine the exact Return On Ad Spend (ROAS) you need to be profitable. Our free calculator uses your product price and cost of goods to find your break-even point, helping you set realistic goals for your ad campaigns.
- 1
1) Input your product financials
Enter your product's selling price and all associated variable costs (COGS, shipping, fees, etc.) to determine your true profit per sale.
- 2
2) The tool finds your margin
It instantly calculates your net profit margin on a single sale before any advertising costs are factored in.
- 3
3) Get your target ROAS
The calculator reveals the minimum ROAS you must achieve. Any ROAS above this number is pure profit for your business.
Frequently asked questions
What is Break-Even ROAS?
Break-Even ROAS is the point at which your revenue from advertising exactly covers both the cost of the ads and the cost of the products sold. It's the minimum ROAS you need to achieve to not lose money on your ad campaigns. Any ROAS above this number is profit.
How do I use this calculator?
It's simple. Enter two key figures: - Product Selling Price: The final price a customer pays for your product. - Cost of Goods Sold (COGS): The total cost for you to acquire or produce one unit of that product. The calculator will then instantly show your required Break-Even ROAS.
What should I include in my "Cost of Goods Sold" (COGS)?
For the most accurate calculation, your COGS should include all costs directly associated with getting one product to the customer. This typically includes the manufacturing/purchase cost, shipping fees, packaging, and any transaction fees (like Stripe or Shopify Payments fees).
My Break-Even ROAS is 2.5x. What does this mean?
A Break-Even ROAS of 2.5x means that for every $1 you spend on advertising, you must generate $2.50 in revenue just to cover your costs and break even. To make a profit, your actual ROAS must be higher than 2.5x.
How can I improve my ROAS?
To get a higher ROAS, you need to increase the revenue generated from the same ad spend. You can do this by: - Increasing your Conversion Rate: Optimize your landing pages and ads to convert more visitors into customers. - Increasing your Average Order Value (AOV): Encourage customers to buy more through bundles, upsells, or free shipping thresholds. - Decreasing your COGS: Find ways to lower your product or shipping costs to improve your profit margin on each sale.