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.
Example and tips
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.
- 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.
What is Kanal?
Kanal is the #1 all-in-one WhatsApp Marketing Platform for Shopify. Automate abandoned cart recovery, send order notifications, create powerful marketing campaigns, and manage all your customer chats in one place.
How our roas break even calculator 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) 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) The tool finds your margin
It instantly calculates your net profit margin on a single sale before any advertising costs are factored in.
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 (FAQ)
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