At what point do your ads become profitable?
Most brands judge their ads against a number they've never worked out. Put yours in below and get your break-even ROAS in under a minute.
Your break-even ROAS
The ROAS where your ads stop losing money and start making it. Drag the sliders.
What you charge the customer.
What it costs you to make or buy it.
Your average shipping cost per order.
Estimate of returns as a % of sales.
Typically 1.5 to 2.5% (e.g. Shopify Payments).
Registered counts VAT at 20% of revenue, same as the calculator sheet.
Packaging, inserts, any other % of revenue.
What you pay your ad manager or agency each month.
The fee is fixed, so what it does to your break-even depends on how much you spend.
Your break-even ROAS
You keep £6.42 of every £13.50 sale after costs, returns and VAT
A guide, not your accounts: this runs on the averages you put in, counts VAT as a flat 20% of revenue and can't see discounts, bundles or your overheads. Close enough to judge your campaigns by. For the exact read on your account, that's what the audit is for.
Now you know the number. Is your account profitable?
That's the bit Ads Manager won't tell you. Pop your email in and I'll send you my free Meta Ads Metrics Guide: which numbers matter, what they're telling you and what a healthy one looks like, so you can judge every campaign against your break-even.
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