Ecom Magic AIBreak-even ROAS calculator
Enter your selling price and product cost: the calculator gives you the break-even ROAS (below it you lose money) and the target ROAS to earn your profit percentage, with every cost of a real order. Free, no sign-up.
Result
Example for a product that costs $12.00 and sells for $39.99 in the United States, prepaid, with the country's typical values. Change the inputs and press Calculate.
Break-even ROAS:
1.79
| Break-even CPA (max without losing money) | $22.40 |
|---|---|
| Break-even ROAS | 1.79 |
| Max CPA to earn 20% | $14.79 |
| Target ROAS to earn 20% | 2.70 |
| Profit per order at the target CPA | $8.00 (20.0 %) |
| Order cost excluding the sale's ad spend | $17.20 |
Cost breakdown of an order at the CPA that earns 20%
| Product | $12.00 |
|---|---|
| Fixed costs per order | $2.00 |
| Cancellations (lost ad spend) | $0.30 |
| Warranty claims | $0.14 |
| Chargebacks | $1.31 |
| Payment processor fee | $1.46 |
| Total | $17.20 |
Want the ideal price, not just the CPA?
The platform's Pricing Calculator proposes the price for 1, 2 and 3 units, saves your analyses and exports a PDF. It does not use credits.
Create my free account →What is break-even ROAS?
ROAS (return on ad spend) is how much revenue you get for every dollar you put into ads. Break-even ROAS is the minimum not to lose money: at a lower ROAS, each sale costs more in ads than it leaves.
How is ROAS calculated?
The basic formula is revenue divided by ad spend. For a single order, it is the price divided by the CPA. Break-even ROAS is the price divided by the break-even CPA, which the calculator gets by subtracting from the price the product, shipping, fulfillment, fixed costs and the expected losses from cancellations, returns, chargebacks and fees.
How to read the result
| Result | What it tells you |
|---|---|
| Break-even ROAS | Below this ROAS the campaign loses money. |
| Target ROAS | The ROAS you need to earn the profit percentage you asked for. |
| Break-even CPA | The same limit expressed as money per sale. |
A ROAS of 3 can be great for a product with a healthy margin and a loss for another with expensive shipping and many returns: that is why it pays to calculate your product's own number instead of using a general rule.
FAQ
What is a good ROAS?
There is no universal number: a good ROAS is one above your break-even ROAS with enough room for your profit. It depends on your price, cost, shipping and returns.
How do you calculate ROAS?
Revenue divided by ad spend. For one order, price divided by CPA. If you sell $100 and spend $25 on ads, your ROAS is 4.
Why is my break-even ROAS so high?
Because the margin left after product, shipping and losses is small compared to the price. Raising the price, selling bundles or cutting returns lowers it.
Is the calculator free?
Yes, it is free and needs no sign-up. It uses the same engine as the platform's Pricing Calculator.
More Ecom Magic tools
Free calculators, no sign-up
From the blog