Media buyers cheer a 2.5 ROAS that quietly loses money after product cost, shipping, and fees. There is one number that decides if your ads make cash. Enter five figures and get it.
Break-even ROAS · target ROAS · current ad profit
Estimates use the costs you enter. Returns, discounts, and blended shipping vary by order, so confirm against your real profit and loss before scaling spend hard.
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Return on ad spend feels like the honest metric. Spend a dollar, make two and a half back, celebrate. The dashboard is green, so the campaign works.
Except ROAS only sees revenue and ad spend. It never sees the product cost, the box, the shipping label, or the three percent the payment processor skims. Once you stack those in, a 2.5 return on a product that costs sixty percent to deliver is a slow leak. You are buying revenue and calling it profit.
The fix is one number: the ROAS where the ad exactly pays for itself. Below it you lose, above it you win. This calculator hands you that line, plus the higher line you need to hit your actual profit goal.
Average order value, cost of goods, shipping, fees, and the margin you want to keep.
Everything but the ad gets subtracted from the order, leaving the dollars an ad can spend.
Break-even ROAS, target ROAS for your profit goal, and your ad profit at your current return.
It is the return on ad spend where the revenue an ad brings in exactly covers the product, shipping, fees, and the ad itself. Above that number you profit, below it you lose. It is the single line that decides whether a campaign is worth running.
ROAS only compares revenue to ad spend. It ignores the cost of goods, shipping, and payment fees on every order. If product plus fulfillment eats sixty percent of the order, your break-even might sit well above 2.5, so a 2.5 return is quietly bleeding cash.
Break-even ROAS is where you make zero profit. Target ROAS is where you hit the margin you actually want. The tool gives you both so you can set a campaign goal that leaves real money for you, not just a number that avoids a loss.
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A tight break-even ROAS is the floor. The next move is seeing which creative and offers your rivals put money behind. Run a brand through the free Ad Spy tool and pull up the live ads they are betting on right now.
See Competitor Ads Now → Takes about a minute. Real ads, pulled live, no guessing.