How to use the Break-even ROAS Calculator
Enter the selling price, what the product costs you to buy and ship, and the percentage your payment processor and store platform take. The result is the ROAS where ad spend uses up all of your profit.
Campaigns need a ROAS above 1.64x to make a profit.
Enter the selling price, what the product costs you to buy and ship, and the percentage your payment processor and store platform take. The result is the ROAS where ad spend uses up all of your profit.
Return on ad spend: revenue from ads divided by what the ads cost. A ROAS of 3x means $3 of sales for every $1 spent.
Low margins push it up. A product with a thin margin needs much more revenue per ad dollar to stay profitable, so raise prices, bundle products or lower costs.
Reach people using ecommerce tools while they work on their numbers.