Ecom Profit Calculator – Break-Even ROAS & Net Margin

Trendtrack's Ecom Profit Calculator tells you in 30 seconds whether an ad campaign is profitable before you launch it. Enter your selling price, product cost, CPM and conversion rate: the tool instantly computes your break-even ROAS, estimated CPA, net profit per sale and net margin.

What is the break-even ROAS?

The break-even ROAS is the minimum return on ad spend you need just to cover your costs — the point where you neither make nor lose money. Below it, every sale costs you money; above it, you start generating profit. For any dropshipper or e-commerce seller running Meta or TikTok ads, it's the single most important number to know before launching a campaign. Most sellers launch first and calculate later. This tool flips that: in 30 seconds, before spending a euro, you know exactly the ROAS your campaign needs to be profitable.

The formulas behind the calculator

The tool chains five simple calculations, all running live in your browser:

  1. CPC (cost per click) = CPM / 1000 × (100 / CTR). A 1.5% average CTR is used by default.
  2. CPA (cost per acquisition) = CPC / (conversion rate / 100).
  3. Gross margin per sale = selling price − product cost − fixed fees.
  4. Break-even ROAS = selling price / CPA.
  5. Net profit per sale = gross margin − CPA, and net margin % = (gross margin − CPA) / selling price × 100.

A worked example

Take a product sold at €49.99, bought at €12, with €2 of fixed fees per order, a €15 CPM and a 2.5% conversion rate:

  • CPC = 15 / 1000 × (100 / 1.5) = €1.00
  • CPA = 1.00 / 0.025 = €40
  • Gross margin = 49.99 − 12 − 2 = €35.99
  • Break-even ROAS = 49.99 / 40 = 1.25
  • Net profit = 35.99 − 40 = −€4.01 → the campaign loses money at this conversion rate.

Bump the conversion rate to 4% and the CPA drops to €25, turning that loss into a €10.99 profit per sale. That's the power of seeing the numbers before you launch.

What is a good ROAS in e-commerce?

There's no universal answer — a good ROAS depends entirely on your margins. A high-margin product (private label, premium) can be profitable at a 2x ROAS, while a thin-margin dropshipping product may need 3x or 4x just to break even. The rule is simple: compare your actual campaign ROAS to the break-even ROAS this tool gives you. Above it, scale. Below it, fix your funnel or your pricing before adding budget.

How to use the calculator

Enter your selling price, product cost, estimated CPM (check your Meta Ads Manager for your niche), your landing page conversion rate, and optionally your fixed fees per order (Shopify transaction fees, apps). The four key metrics update instantly: break-even ROAS, estimated CPA, net profit per sale (green if positive, red if negative) and net margin %.

How to improve your numbers

  • Raise your average order value with bundles, upsells and free-shipping thresholds — it lifts margin without touching ad cost.
  • Improve your conversion rate: a better landing page directly lowers your CPA.
  • Lower your CPM with stronger creatives and tighter targeting.
  • Negotiate product cost with your supplier or agent at volume.

Go further with Trendtrack

This calculator tells you whether a campaign can be profitable. Trendtrack shows you which products and ads are already winning right now — analyze the stores and creatives that perform so you launch campaigns that beat break-even from day one. Discover our other free tools: CLV calculator, ROAS calculator, profit margin calculator, CPA calculator.

Frequently asked questions

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