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.
ROAS targets come from margin, not habit.
Sell at $40.00 with $28.00 in combined product cost and fees and your pre-ad margin is $12.00, which is 30%. Break-even ROAS is 1 divided by 0.30, so 3.33x. A campaign returning $3.33 for every ad dollar is standing still; 4x is profit; 2.5x is a paid discount you are handing the market.
Want ads to preserve a 20% net margin? Only 10% of revenue is left for ad cost, and the required ROAS jumps to 10x. That is why blanket targets like aiming for 4x fail: two products with different margins need different ROAS floors, and this tool computes each one.
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.
Why is my break-even ROAS different from my ACOS ceiling?
They are the same boundary expressed two ways. ACOS is ad spend over ad sales; ROAS is ad sales over ad spend, so break-even ROAS is 1 divided by break-even ACOS. Use whichever your dashboard reports.
Should new products ever run below break-even ROAS?
Sometimes, deliberately and briefly. A launch can buy rank and reviews at a planned loss, but set an end date and a budget cap upfront so the investment phase ends by decision, not by drift.
Estimates for planning only. Verify current Amazon fees in Seller Central; results depend on your inputs.
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