How to Use the Ad Spend & Break-Even Profit Calculator
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1
Enter your Product Selling Price and Cost of Goods Sold (COGS) / Fulfillment Cost.
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2
Review your gross profit per unit and gross profit margin percentage.
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3
Enter your planned Ad Spend budget and estimated Cost Per Click (CPC).
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4
Review the exact Minimum Number of Sales required to break even ($0 net profit).
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5
Inspect the Required Website Conversion Rate (%) and Minimum Target ROAS needed to remain profitable.
Practical Example & Use Case
Common Real-World Scenario
Selling a $100 item with $40 COGS ($60 margin): at a $1.50 CPC on Google Ads, you need a minimum 2.50% conversion rate and a 1.67x ROAS to break even.
Technical Notes & Limitations
Browser Engine Architecture
Calculates unit-level break-even economics. Taxes, merchant payment processing fees (e.g. Stripe 2.9% + 30¢), and return rates can be incorporated into COGS.
Frequently Asked Questions
What is the formula for Break-Even ROAS?
Break-Even ROAS = 1 / Gross Profit Margin %. If your margin is 50%, your Break-Even ROAS is 1 / 0.50 = 2.0x (200%). Any campaign ROAS above 2.0x produces net profit.