Break-even ROAS calculator

Find the lowest return on ad spend that still makes money. Below this ROAS, every sale that comes from an ad loses money once product cost, fees and VAT are paid.

Currency

The price

Includes taxExcludes tax

Commission is charged on

Price incl. taxPrice excl. tax

Selling price

As your ad platform reports the sale value.

VAT / sales tax rate

Use 0 if you don't charge it or the marketplace collects it.

Product cost per unit

Other costs per order

Shipping you pay, packaging, fulfilment.

Marketplace commission

Profit you want to keep per sale

Optional.

Results

Formulas

Profit before ads = price without tax − product cost − other costs − commission.
Maximum ad spend per sale = profit before ads.
Break-even ROAS = selling price ÷ maximum ad spend. ROAS 4.00 means $4 of sales for every $1 of ads.
Break-even ACoS = maximum ad spend ÷ selling price (the inverse of ROAS).
ROAS for a target profit = selling price ÷ (profit before ads − target profit).
ROAS here uses the price as you enter it. If your ad platform reports sales including VAT, enter the price including VAT.

Results are estimates for planning, not tax or financial advice. Check your marketplace fees and tax obligations with the official source or a qualified adviser.