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Free Breakeven ROAS & CPA Calculator

Know exactly how much you can spend on ads while keeping your profit intact. This breakeven ROAS and CPA calculator helps e-commerce sellers, dropshippers, and ad buyers find their minimum and target return on ad spend.

Breakeven ROAS Calculator

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Breakeven ROAS
Target ROAS (with profit)0.00
Max CPA ($)$0.00
Gross Profit Per Unit$0.00
Net Profit Per Unit (at target)$0.00

How to Use

Using this breakeven ROAS calculator takes just a few steps. Start by entering your product price — what you sell the item for. Then enter your product cost (what you pay your supplier), shipping cost, and any other costs like packaging or marketplace fees.

Finally, set your desired profit margin. This is the profit percentage you want to earn on each sale before ad costs. A 20% margin is a common starting point for most e-commerce businesses.

The calculator then shows your breakeven ROAS, target ROAS, maximum CPA (what you can spend to acquire a customer), and your per-unit profits.

ROAS Formula Explained

Cost Per Unit = Product Cost + Shipping + Other Costs
Gross Profit = Price − Cost Per Unit
Breakeven ROAS = Price / Cost Per Unit
Max CPA = Gross Profit − (Price × Desired Margin / 100)
Target ROAS = Price / (Price − Max CPA)

Frequently Asked Questions

Breakeven ROAS (Return on Ad Spend) is the minimum revenue you need to earn for every dollar spent on advertising to cover your product costs. If your ROAS is below this number, you are losing money on each sale.
A ROAS of 3-5x is considered good for dropshipping and e-commerce. However, the right target depends on your profit margins. This calculator helps you find your specific target ROAS based on your actual costs and desired profit margin.
Breakeven ROAS is the minimum ROAS needed to cover your product costs with zero profit. Target ROAS includes your desired profit margin, so it is the ROAS you need to achieve to hit your profit goals.
To improve ROAS, you can increase your product price, reduce product or shipping costs, improve ad targeting to reach higher-intent customers, optimize your ad creatives, or negotiate better rates with suppliers and shipping carriers.