Loading

Break-Even ROAS Calculator.

Work out the ROAS and ACOS your ads need to break even, with VAT taken out and Amazon or store fees included. Then check your actual ROAS, ACOS and TACOS against it.

Calculator

Results update as you type. Defaults are an illustrative product, not client data.

Where you sell
Price and VAT
£

What the customer pays, including any VAT.

Use the same basis as the report you compare against. If unsure, check one order in the report against its price.

Costs per sale
£

Per unit or order, excluding VAT.

%

Most Amazon UK categories charge 8–15% of the price including VAT. Check yours in Seller Central.

£

Per unit, from your FBA fee preview or 3PL invoice.

£

Pick and pack, inbound shipping, storage: anything that comes with each sale.

%

Share of revenue you expect to give back.

Your target
%

Share of sales left to cover fixed costs and profit.

%

Orders per click. Adds a maximum cost per click.

Your ad results (optional)

Same period and the same VAT basis as above. Add total sales to see TACOS.

£
£
£

Your break-even

Break-even ROAS
–
Break-even ACOS
–
Target ROAS
–
Target ACOS
–
Max cost per order
–
Max cost per click
–
Per-sale breakdown
Contribution per sale before ad spend

Running above break-even on Amazon? See how Odla manages Amazon advertising.

ACOS to ROAS converter

ROAS = 100 ÷ ACOS. Type either one.

%

How it works.

The calculator follows the method in our guide to the break-even ROAS formula, which has worked examples for an online store and an Amazon UK listing.

  1. Revenue excluding VAT = price the customer pays ÷ (1 + VAT rate).
  2. Contribution before ad spend = revenue excluding VAT − product cost − marketplace or payment fees − fulfilment and shipping − other variable costs − returns allowance. The Amazon referral fee is a percentage of the VAT-inclusive price.
  3. Margin before ad spend = contribution ÷ sales per unit, on the same VAT basis as your ad report.
  4. Break-even ROAS = 1 ÷ margin. Break-even ACOS = margin.
  5. Target ROAS = 1 ÷ (margin − profit you want to keep). Target ACOS = margin − profit you want to keep.
  6. Maximum cost per order = contribution. Maximum cost per click = maximum cost per order × conversion rate.
  7. TACOS = ad spend ÷ total sales. While TACOS stays below your margin, the product makes money after all its advertising.

Fixed costs such as salaries and rent are left out, so set your target above break-even to cover them.

Common questions.

How do I calculate break-even ROAS?

Divide 1 by your margin before ad spend. The calculator works that margin out from your price, VAT, fees and costs. A 25% margin needs a ROAS of 4.0 to break even; a 40% margin needs 2.5.

How do I convert ACOS to ROAS?

ROAS = 100 ÷ ACOS, with ACOS as a percentage. An ACOS of 25% is a ROAS of 4.0, and a ROAS of 5 is an ACOS of 20%. Break-even ACOS is the same number as your margin before ad spend.

What is TACOS?

TACOS is total advertising cost of sales: ad spend divided by all sales, paid and organic, for the same period. If TACOS is below your margin before ad spend, the product still makes money after all its advertising, even if some campaigns run above break-even ACOS.

Should I enter prices with or without VAT?

Enter the price the customer pays and choose your VAT rate. VAT is not revenue for a VAT-registered seller, so the calculator takes it out before working out your margin. Then choose whether your ad report shows sales with or without VAT, so break-even matches the figures you compare it with.

Why is the Amazon referral fee worked out on the VAT-inclusive price?

Amazon UK charges its referral fee on the total amount the buyer pays, including VAT, so the calculator does the same. Amazon says most referral fees are between 8% and 15%, depending on the category. Check yours in Seller Central.

Is what I enter stored?

No. The calculator runs in your browser and the numbers you type are not sent to Odla. If you copy a share link, the numbers go into that link.

Spending above break-even?

Odla sets Amazon and paid media bids and budgets from margin, not platform-reported ROAS.

Talk to us about your ads Amazon marketplace management