Free Breakeven ROAS Calculator

ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. It's crucial for determining campaign profitability, setting realistic budgets, and making data-driven marketing decisions. A good ROAS varies by industry, but generally, you want it to be significantly higher than your breakeven point to ensure sustainable growth.

To calculate breakeven ROAS, enter your product selling price and all associated costs including cost of goods, shipping, transaction fees, and other expenses. Our calculator automatically accounts for VAT adjustments and applies the formula: Revenue ÷ Gross Profit. The result shows the minimum ROAS needed to cover all expenses without making a loss.

VAT inclusion depends on your business structure and location. If you can reclaim VAT on costs but must charge VAT to customers, include it in revenue but exclude it from costs. Our calculator lets you set different VAT rates for each cost category or use a universal rate, ensuring accurate calculations for your specific situation.

Tariffs increase your cost of goods sold, which raises your breakeven ROAS. If you're selling in the US and importing goods, our calculator applies the tariff percentage to your cost of goods. For example, a 15% tariff on $10 COGS increases it to $11.50, requiring higher ROAS to maintain profitability.

Other costs include payment processing fees (typically 2-3%), customer service expenses, storage/warehousing costs, returns processing, packaging materials, marketing tools subscriptions, and any operational expenses directly related to order fulfillment. Including all relevant costs ensures your breakeven ROAS calculation is comprehensive and accurate.

Most successful businesses target 20-50% above their breakeven ROAS to account for market fluctuations, seasonal variations, and business growth investments. For example, if your breakeven ROAS is 2.0, targeting 2.4-3.0 provides a healthy profit margin for reinvestment and risk mitigation.

Recalculate your breakeven ROAS monthly or whenever costs change significantly. Product cost increases, shipping rate changes, new tariffs, or VAT rate adjustments all impact your breakeven point. Regular recalculation ensures your advertising targets remain profitable and competitive.

Yes, our breakeven ROAS calculation applies to all advertising platforms including Google Ads, Facebook Ads, Amazon PPC, TikTok Ads, and any other paid marketing channels. The breakeven ROAS remains constant regardless of platform – what matters is ensuring your total advertising spend generates sufficient revenue to exceed this threshold.