Find the ROAS where your ads stop losing money
Put in your price and costs. The calculator shows your break-even point and the stricter target we hold every client ad to before it gets more budget.
Your numbers
Your results
- Revenue per order after discount
- $0
- Profit per order before ads
- $0
- Break-even cost per sale
- $0
- Target cost per sale
- $0
- Ad cost plus discount, as a share of price
- 0%
Your ad budget plan
- Monthly ad budget
- $0
- Daily ad budget
- $0
- Clicks needed a month
- 0
- Most you can pay per click
- $0
- Profit per order after ads
- $0
- Monthly profit from ad orders
- $0
How to run it
Break-even is the floor
ROAS is revenue divided by ad spend. At break-even, an ad pays for itself and nothing else. Anything below it loses money on every sale it brings in.
break-even ROAS = revenue per order ÷ profit per order before ads
Margin decides almost everything here. A product with 50% margin breaks even at 2.0x. At 25% margin you need 4.0x just to stand still.
That is why a $22 candle and a $1,200 amplifier need completely different ad plans.
We hold ads to 25% of price
Break-even keeps the lights on. It doesn't pay for the next batch of inventory. So we cap cost per sale at 25% of the selling price, and when a discount is part of the offer, ad cost plus discount stays under 30%.
target cost per sale = the lower of 25% of price, or (30% minus discount) of price
Ads that run over that line after two target sales worth of spend get paused. Their budget moves to whatever is running under it.
Repeat buyers change the math
This calculator counts the first order only. If customers come back, the first sale can cost more than 25% and still make money over a year. Most of that return traffic comes from email, which is why we build the welcome and post-purchase flows before we scale ad spend.