The Ultimate Break Even ROAS Calculator for Dropshipping & E-commerce
Are your Facebook Ads actually making money, or are you just burning cash? Many e-commerce owners mistake Revenue for Profit. Use this free tool to find your exact Break-Even ROAS—the specific Return on Ad Spend number you must hit to cover your product costs and fees.
What is Break Even ROAS?
Break Even ROAS (Return on Ad Spend) is the metric that tells you the minimum performance your ad campaigns need to achieve to cover all your expenses. If your actual ROAS is below this number, you are losing money on every sale. If it is above this number, you are generating net profit.
The Break Even ROAS Formula
Break Even ROAS = Selling Price / (Selling Price - Total Costs)
Or simpler:
Break Even ROAS = 1 / Profit Margin %
Example Calculation
- Selling Price: $50.00
- Product Cost (COGS): $15.00
- Shipping & Fees: $10.00
- Total Profit Margin: $25.00 (50%)
In this scenario, your Break Even ROAS is 2.0 ($50 / $25). This means for every $1 you spend on ads, you must generate at least $2 in revenue just to stay afloat.
Why Does It Matter?
Scale Profitably
Know your target ROAS before spending on ads to ensure profitable scaling.
Avoid Losses
Prevent unprofitable campaigns by understanding your unit economics.
Make Better Decisions
Use data-driven insights to optimize pricing and reduce costs.
Frequently Asked Questions (FAQ)
Ready to scale your business?
Use the calculator above to plan your next winning campaign.