Max ad spend before losing money. The Break-Even Ad Budget Calculator takes orders you expect the campaign to bring, average order value, variable cost per order (product, shipping, fees) and returns maximum ad spend before losing money plus maximum cost per order, break-even roas. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Good business decisions come from putting numbers on the options before committing. Run the calculation with your best estimate, then again with a pessimistic one, and see whether the decision survives both. Use the worked example below to check the maths against your own figures.
How the Break-Even Ad Budget Calculator works
Every order contributes its gross profit towards the ad bill. Spend more than the total contribution and the campaign loses money however impressive the revenue.
Worked example
With the example values (orders you expect the campaign to bring of 200, average order value of $80, variable cost per order (product, shipping, fees) of $45), the maximum ad spend before losing money is $7,000.00; maximum cost per order $35.00, break-even roas 2.29x. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is maximum ad spend before losing money calculated?
maximum budget = (order value − variable cost per order) × expected orders.
Which figures do I need?
Orders you expect the campaign to bring, average order value, variable cost per order (product, shipping, fees). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How reliable is the result?
As reliable as the estimates you enter. Run the calculation with optimistic and pessimistic inputs to see the range of outcomes before deciding.
