Break-even cost per result and ROAS calculator
Find the most a client can pay per sale or lead and still break even, then set a target below it. Runs in your browser. Nothing is sent or saved.
Runs in your browser. Nothing you enter is sent or stored.
How it works
- Online sales: break-even cost per sale = average order value x gross margin. Break-even ROAS = 1 / gross margin.
- Leads: break-even cost per lead = margin per customer x share of leads that become customers.
- Suggested targets apply your safety buffer: target cost = break-even x (1 - buffer), target ROAS = break-even ROAS x (1 + buffer).
How to use the result
These are the first-purchase economics only. If customers buy again, lifetime value can justify a higher cost, but agree that with the client in writing. Record the target and the date it was agreed.
Common questions
Which margin should I use?
Gross margin on the product, before ad spend. Ask the client for it, and be clear whether shipping and payment fees are included.
What if a customer buys more than once?
Then lifetime value is higher than the first order. Use it only if the client agrees and the data supports it.
Is a buffer really needed?
Yes. Your inputs are estimates, and a target exactly at break-even leaves no room for profit or error.
Related
Stop losing 12 days a month to manual work
Where the 12 days go, for an agency running 4 Meta ad accounts
Scenario: 15 minutes of checking and 30 minutes of diagnosing per account per day over 22 working days, plus 2 reports per account at 3.5 hours each. Your numbers may differ.
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