Break-Even ROAS Calculator
A good ad return depends on what remains before advertising. Enter revenue and all non-ad variable costs to find your break-even advertising spend.
Your calculation
Free toolUse one currency and a consistent tax basis. No currency conversion.
Results include only the costs and assumptions entered.
How to use this calculator
Enter your values in one currency. The result updates as you type. Check the fee and tax assumptions before using it for a pricing decision, then download a PDF if you want a record.
How the result is calculated
Break-even ad spend per order = revenue − non-ad variable costs. Break-even ROAS = revenue ÷ that contribution. This excludes general overhead and business taxes.
Worked example
£40 revenue and £25 non-ad costs means £15 maximum ad spend and 2.67× break-even ROAS.
What should I include in my costs?
Include the costs that change with the item or order: materials, purchasing, making time, packaging, fulfilment and applicable fees. Allocate wider overhead separately. An omitted cost will make the estimate look better than it should.
Does this calculate my tax liability?
No. Entered tax treatment is an assumption for this calculation. The tool does not determine VAT registration, sales-tax nexus, tax rates by location or business income taxes. Check unusual situations with a qualified adviser.
Can I use USD?
Yes. Choosing US inputs uses dollars without converting amounts. Country-specific presets only apply where explicitly stated. Changing a symbol does not establish a platform fee or tax rule.
Questions about this calculation
What is break-even ROAS?
Revenue divided by contribution before advertising. With £40 revenue and £25 non-ad variable costs, £15 is available for ads and the threshold displays as 2.67×. Spending the full allowance leaves nothing for wider overhead.
Is any higher ROAS enough for a business profit target?
The target also needs to retain the required contribution for overhead and the business. Use actual revenue and complete costs, and keep cancellations or attribution differences in the ad report clear.