BEROAS Calculator
Find your break-even ROAS — the exact ROAS your ads must reach before a product makes its first cent of profit.
Your product economics
Results
Lower is better: a low BEROAS means your ads have room to breathe.
The BEROAS formula
BEROAS = Selling price ÷ (Selling price − Product cost − Shipping − Fees)
BEROAS (Break-Even Return on Ad Spend) is the ROAS at which an order generates exactly zero profit. The denominator — selling price minus all per-order costs — is your contribution margin per order.
Everything your real ROAS achieves above the BEROAS is profit. Everything below is a loss, no matter how healthy the campaign looks in the ads manager.
How to use this calculator
- 1
Enter your selling price — what the customer pays for the product.
- 2
Enter your per-order costs: what you pay for the product, shipping, and payment or platform fees.
- 3
Read your BEROAS and break-even CPA — the two numbers that define the hard floor for your ad performance.
Why BEROAS is the first number to know before running ads
Launching ads without knowing your BEROAS means scaling blind: you can watch a campaign hit ROAS 3 and still lose money on every order if your break-even sits at 3.5.
Calculating it before the first ad dollar tells you how ambitious your ads need to be — and whether the product's pricing leaves ads a realistic chance at all.
A product with a very high BEROAS isn't automatically dead, but it needs either a price increase, cheaper fulfillment, or exceptional creative performance.
How to lower your BEROAS
Raise the selling price: even small increases often move the BEROAS more than any other lever, because the extra revenue is pure margin.
Cut per-order costs: cheaper sourcing and shipping directly widen the contribution margin. This is exactly where fulfillment pricing matters in dropshipping.
Add order value: bundles and upsells raise the average order value against fixed per-order costs, which lowers the effective BEROAS of the whole funnel.
Frequently asked questions
What is BEROAS in simple terms?
It's the minimum ROAS your advertising must reach so that an order neither makes nor loses money. Above it you profit, below it you pay for every sale out of your own pocket.
What is the difference between BEROAS and break-even CPA?
They describe the same break-even point from two angles. BEROAS is a revenue multiple (revenue ÷ ad spend at zero profit); break-even CPA is an absolute dollar amount — the maximum you can pay to acquire one order. Break-even CPA equals your contribution margin per order.
Does BEROAS include my fixed costs like tools or subscriptions?
No — BEROAS works on per-order economics. Fixed costs come on top and decide how many profitable orders you need to actually be profitable overall as a business.
How is BEROAS related to profit margin?
BEROAS is the inverse of your pre-ad profit margin: BEROAS = 1 ÷ margin. A 40% margin means a BEROAS of 2.5.