Break-Even ROAS Calculator | Find Your Minimum Profitable ROAS
Know your break-even point before you scale.
Calculate your break-even ROAS based on profit margin. Know the minimum ROAS needed before scaling ads. Free calculator for e-commerce and dropshipping.
Stop guessing if your ads are profitable. Enter your profit margin to instantly see the minimum ROAS you need to break even. Essential for e-commerce, dropshipping, and any business running paid ads.
Input profit margin, get minimum ROAS
Good ROAS
Varies by margin
Average ROAS
Break-even + 30-50%
Break-Even Tip
Dropshipping (15% margin): 6.67 ROAS. E-commerce (30%): 3.33 ROAS. SaaS (70%): 1.43 ROAS.
Sources: Shopify E-commerce Benchmarks 2024, Oberlo Dropshipping Statistics, SaaS Capital Growth Metrics (Verified: 2024-12)
- E-commerce owners unsure if their ROAS is profitable
- Dropshippers with thin margins needing precise calculations
- Marketing managers setting realistic ROAS targets
- Media buyers optimizing for profitability, not just ROAS
- Those with subscription models—LTV calculations are different
- Those looking for basic ROAS formula—see our main calculator
Scenario: Product sells for $30, costs $18 from supplier, $3 shipping = $9 profit = 30% margin.
Calculation: Break-Even ROAS = 1 / 0.30 = 3.33:1
Insight: To make $3 profit per sale on ads, need 4:1+ ROAS. At 3:1, you lose money.
Scenario: Product margin is 40% before returns. 15% return rate effectively reduces margin to 34%.
Calculation: Adjusted Break-Even = 1 / 0.34 = 2.94:1
Insight: Many forget returns when calculating break-even—it's a costly mistake.
- Use NET profit margin, not gross margin, for accurate calculations
- Include ALL costs: COGS, shipping, returns, payment fees, overhead
- For dropshipping, factor in supplier costs and refund rates
- Set target ROAS 30-50% above break-even for sustainable profit
- Review break-even quarterly as costs change
Using gross margin instead of net profit margin
Include shipping, returns, payment fees, and overhead in your margin calculation
Setting ROAS targets without knowing break-even
Calculate break-even first, then add your desired profit margin on top
Using one break-even for all products
Different products have different margins—calculate separately for accuracy
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