Break-Even ROAS Calculator
Calculate contribution margin, break-even ROAS, a target ROAS and the maximum advertising cost per sale after product, fulfillment and transaction costs.
Find the ROAS that actually breaks even.
Move beyond the popular but misleading idea that the same ROAS is good for every business.
Method: Break-even ROAS = 1 ÷ contribution margin. Contribution excludes advertising but includes the variable costs entered above.
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A clear answer, with the method included.
How to use this break-even roas calculator
- Enter the requested information in the fields above.
- Check that the values match your situation.
- Read the result, then copy it if you need it elsewhere.
The formula
Contribution margin = (selling price − variable costs) ÷ selling price. Break-even ROAS = 1 ÷ contribution margin.
Example
If a $120 order leaves $62.40 before advertising, its contribution margin is 52% and its break-even ROAS is about 1.92x.
Official reference
Good to know.
Is 4x ROAS always profitable?
No. Profitability depends on your contribution margin and additional costs.
Should I include overhead?
This calculator focuses on variable costs. Add a desired post-ad profit margin to create a safer target.
What if I sell a service?
Use delivery labor or contractor cost as the service cost and include payment fees as applicable.