Minimum Profitable ROAS Calculator
Your ad platform shows you the ROAS of your campaigns, but a ROAS that looks good can still lose you money if your margin is tight. This calculator translates your current ROAS into real profit per sale, and tells you the minimum ROAS you need to avoid losing money.
How is it calculated?
From your current ROAS (revenue ÷ ad spend), the implicit advertising spend per sale is derived: sale price ÷ ROAS. With that spend, real profit per sale is calculated exactly as in real product profit: real revenue (excluding VAT) − fees − product cost − shipping − packaging − other costs − implicit advertising − expected cost of returns. Min ROAS is the break-even point: the lowest ROAS at which you still don't lose money, calculated with no advertising spend and compared against the sale price.
Examples
Current ROAS 4x, product at 30 with cost 10 and 16.5% in fees
With a 4x ROAS you lose 2.31 per sale. You'd need at least 5.78x to avoid losing money.
Current ROAS 8x, product at 60 with cost 22 and 14% in fees
With an 8x ROAS you earn 3.07 per sale. The minimum to avoid losing money would be 5.68x.
From your ROAS to real profit per sale
Minimum ROAS is the break-even point: below it you lose money even if the platform shows a high ROAS. It's calculated with the same breakdown as real product profit. If you'd rather think in cost per sale, use max profitable CPA; to set the price, minimum profitable price.