Creator Operations Desk
Break-even ROAS Calculator
Estimate break-even ROAS from selling price, pre-cost margin, product cost, shipping and platform fee. The order-level formula and assumptions are explicit, and figures stay in your browser.
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Calculate break-even ROAS
What break-even ROAS does—and does not—show
Break-even ROAS is the revenue multiple needed to cover advertising under one order-level cost model. This calculator takes selling price times a margin before the listed costs, then subtracts product, shipping and platform costs. It excludes returns, discounts, fixed overhead, commissions and lifetime value.
Break-even ROAS formula and assumption
Amount available for ads per order = selling price × margin percentage − product cost − shipping − platform fee. Break-even ROAS = selling price ÷ amount available for ads per order. The margin must be before the listed costs, and the resulting ad contribution must be positive.
Worked break-even ROAS example
With a $1,000 selling price, a 60% pre-cost margin, $300 product cost, $100 shipping and a $50 platform fee, $150 remains for advertising. The break-even ROAS is about 6.6667x, before returns or discounts are included.
How to use
- Enter one product's selling price and a margin percentage before the costs listed below are deducted.
- Enter product, shipping and platform cost per order; enter zero only where a cost truly does not apply.
- Treat the result as a transparent baseline, then add a buffer for refunds, discounts, attribution limits and omitted costs.
Frequently asked questions
Why does the calculator require selling price?
Margin is a percentage while product, shipping and platform entries are monetary amounts. Selling price converts them into a consistent per-order contribution before ROAS can be calculated.
Can I use my standard gross margin?
Only if it is before the listed product, shipping and platform costs. Do not deduct any cost twice; use one consistent order-level cost model instead.
Does ROAS above break-even guarantee profit?
No. Returns, discounts, payment fees, fixed costs, attribution error and product mix can all change real profitability. This is a planning estimate, not financial advice.