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Ecommerce guide

What ROAS do you need? Find your break-even number first

ECOMMERCE GUIDE 1.64x break-even ROAS in ourexample Trendifico

ROAS (return on ad spend) is revenue divided by ad spend. Ad platforms show it on every campaign, but it only means something when you compare it to your break-even ROAS.

The formula

Break-even ROAS is your selling price divided by your profit per sale before ads. If you sell a $50 product and keep $30.50 after product cost, shipping and fees, your break-even ROAS is 50 ÷ 30.50 = 1.64x.

Try it here · Break-even ROAS Calculator

Open full tool
Break-even ROAS
1.64x
Max ad cost per sale
$30.50
Ads can take up to
61.0% of revenue

Campaigns need a ROAS above 1.64x to make a profit.

What the result tells you

  • Below break-even, every sale from ads loses money.
  • At break-even, ads pay for themselves but earn nothing.
  • Above break-even, the difference is your profit.

Track the rest of your campaign numbers, like CTR and cost per click, with the ad metrics calculator. If your break-even ROAS comes out high, revisit your pricing and margins first.

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