How many sales do you need to break even on your ad spend? Calculate required orders and target ROAS.
Enter your ad spend, the profit you make per sale, your average order value (AOV) and a target ROAS. Break-even orders are calculated as ad spend divided by profit per sale, rounded up, which is the number of sales needed just to cover the ad budget. Target ROAS is your goal of revenue earned per rupee spent (revenue needed = ad spend x target ROAS), letting you see how many orders at your AOV are required to hit it.
With a ₹10,000 ad budget and ₹300 profit per sale, you need 34 orders just to break even (10,000 / 300 = 33.3, rounded up). At a ₹1,500 AOV and a target 3x ROAS, you would need ₹30,000 in sales, i.e. 20 orders, to reach that return.
There is no universal number, but your break-even ROAS is roughly your selling price divided by your gross margin per order; anything above that is profitable. Many D2C sellers aim for 2.5x-4x depending on margins.
Use contribution profit: selling price minus product cost, packaging, shipping and payment/marketplace fees, but before the ad spend. That way break-even orders reflect real money left to cover ads.
No. If you sell a lot on COD, factor RTO losses into your profit per sale first (use the COD Profit Calculator), otherwise your true break-even will be higher than shown.
ROAS counts revenue, not profit. If your margin after product cost, shipping and fees is below 50%, a 2x ROAS may not cover costs, so compare it against your break-even ROAS, not just a round number.
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