PALLAS / CALCULATOR
Break-even ROAS Calculator
Find the ROAS you need to break even after product cost and other variable costs, rather than relying on gross margin alone.
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INPUT
Enter values
Method & formula
The calculator subtracts your non-ad variable costs from the sale. What remains is the most you can spend on advertising before that order moves below break-even.
- Contribution before ads = selling price − non-ad variable costs
- Break-even ROAS = selling price ÷ contribution before ads
Example
If a sale of 100 leaves 40 after non-ad variable costs, you can spend up to 40 on advertising at break-even. That gives a break-even ROAS of 2.50×.
FAQ
Why is this different from 1 ÷ gross margin?
Because shipping, payment fees, marketplace commissions and other variable costs can reduce the money left to pay for advertising.
What if contribution is zero or negative?
Then there is no positive advertising spend that can make the order break even under those inputs.