Break-even ROAS calculator.
The exact return on ad spend your margin can support before you lose money. Enter your per-unit numbers.
Get a free audit ↗Break-even ROAS = sale price / profit before ads. Below this ROAS you lose money on the ad-driven sale.
ROAS is the mirror of ACOS.
ROAS (return on ad spend) is revenue divided by ad spend, so higher is better. Your break-even ROAS is your sale price divided by your profit before ads. Hit exactly that and you make zero; beat it and you profit.
ROAS and ACOS are linked
Break-even ROAS = 1 divided by your break-even ACOS. If your margin is 25 percent, break-even ACOS is 25 percent and break-even ROAS is 4x.
Target above break-even
To bank a target margin, you need ROAS higher than break-even. Size the spend with the PPC budget calculator.
What is a break-even ROAS?
The return on ad spend at which advertising profit is exactly zero. It equals your sale price divided by your profit before ad spend.
How do I calculate break-even ROAS?
Take price minus product cost minus Amazon fees to get profit before ads, then divide the sale price by that profit.
What ROAS should I aim for?
Higher than your break-even. If break-even ROAS is 4x, you must run above 4x to profit, and higher still to hit a target margin.
Estimates for planning only. Verify current Amazon fees in Seller Central; results depend on your inputs.
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