Break-even ROAS Calculator
What is the minimum ROAS you need to stay profitable? Enter your unit economics and find your threshold instantly.
Product Economics
Enter your unit economics to find your break-even ROAS
Compare (Optional)
Enter your current ROAS to see how it compares
Break-even ROAS
1.9x
Your minimum ROAS to break even is 1.86x
ROAS Threshold
Margin Breakdown
Formula
Net Margin Rate = (ASP - COGS - Fees - Shipping) / ASP
Break-even ROAS = 1 / Net Margin Rate
Understanding Break-even ROAS
ROAS (Return on Ad Spend) tells you how much revenue you generate per dollar spent on ads. But a high ROAS does not guarantee profit — it depends entirely on your margins.
Break-even ROAS is the minimum ROAS at which your ad-generated revenue exactly covers all costs (COGS, platform fees, shipping) plus the ad spend itself. Below this threshold, every sale from ads loses money.
Net Margin Rate = (ASP - COGS - Platform Fees - Shipping) / ASP
Break-even ROAS = 1 / Net Margin Rate
For example, if your net margin rate is 25%, your break-even ROAS is 4.0x. Any campaign running below 4.0x is losing money — even if TikTok Ads Manager shows a "healthy" 3x GMV ROAS.
This is why Profit ROAS matters more than GMV ROAS. For real-time Profit ROAS tracking across all your TikTok Shop campaigns, try AxonRow free for 14 days.