Margin Math
Break-Even ROAS Calculator
The minimum ROAS that keeps you in the black. Below this number you are subsidising your own revenue.
— CategoryMarketing & Growth
Product Economics
Enter your unit economics to find break-even ROAS
$
Price customers pay (AOV)
$
Manufacturing / wholesale cost
$
Fulfillment & shipping per order
$
Payment processing, Shopify, etc.
$
Returns, overhead, miscellaneous
Formula
Margin = (Price − All Costs) ÷ Price
Break-even ROAS = 1 ÷ Margin
Break-Even ROAS
1.67x
Minimum to be profitable
Gross Margin
60.0%
After all costs except ads
Gross Profit / Unit
$48.00
Available for ad spend
Total Costs / Unit
$32.00
Excl. ad spend
Your break-even ROAS is 1.67x — any ROAS above this is profitable
With a 60.0% gross margin, you have $48.00 per unit to cover ad spend.
Profit Per Unit at Different ROAS Levels
How much you profit per sale depending on your ROAS
Cost Breakdown per Unit
Selling Price$80.00100.0%
Product Cost$20.0025.0%
Shipping$8.0010.0%
Platform Fees$4.005.0%
Available for Ads$48.0060.0%
Break-even ROAS: 1.67x — You must generate $80.00 revenue for every $48.00 in ad spend
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