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Break-even ROAS Calculator

A high ROAS on the ad dashboard can still mean no profit. Work out, for your own product, the minimum ROAS you need and how much you can bid per click.

1Per unit

KRW
KRW
KRW
%
Smart Store about 5 to 6.6%, Coupang about 8.6 to 11.9% by category (incl. VAT). Margin calculator to check
KRW
KRW
%
Simplified taxpayer (retail) about 1.5%; general taxpayer roughly 1/11 of (price − cost) as % of sales

2Target

%
Share of sales to keep after ad spend
%
Purchases per 100 clicks (for max CPC)

3Actual campaign results · optional

KRW
KRW
Conversion sales from your ad report

How it is calculated

  1. Profit per unit before ads = payment (price + customer shipping) × (1 − fee rate − other cost rate) − cost − courier − packaging
  2. Pre-ad margin = profit per unit before ads ÷ payment
  3. Break-even ROAS = 100% ÷ pre-ad margin; below it, more ads mean more losses
  4. Target ROAS = payment ÷ (profit before ads − payment × target net margin)
  5. Max CPA(ad spend you can afford per sale) = profit before ads − target profit; max CPC = max CPA × conversion rate

Worked example

With a price of 29,900 KRW, cost 12,000 KRW, fees 5.5%, other 1.5%, courier 3,300 KRW and packaging 500 KRW, profit before ads is 29,900 × 0.93 − 15,800 = 12,007 KRW, a 40.2% margin. Break-even ROAS is about 249%, and keeping 10% after ads needs a ROAS of about 332%.

Pre-ad marginBreak-even ROASMax ACoS
50%200%50%
40%250%40%
30%333%30%
25%400%25%
20%500%20%
10%1,000%10%

FAQ

Is a ROAS of 500% always profitable?

No. A product with a pre-ad margin below 20% loses money even at 500%. The lower the margin, the faster break-even ROAS climbs.

How do ROAS and ACoS differ?

ACoS = ad spend ÷ ad sales, the inverse of ROAS. ROAS 400% = ACoS 25%. Amazon uses ACoS; Korean marketplaces mostly use ROAS.

Why does ad-report revenue differ from real profit?

Ad reports usually count gross payments and may include returns, cancellations or overlap with other campaigns. Decide based on profit from actual payouts.

Should I stop ads that miss break-even?

Some strategies accept a loss on the first sale, such as gathering early reviews or products with strong repeat purchase. Even then, set a cap on how much you are willing to lose.

This calculator is for guidance only. Real ad performance varies widely with keywords, season and product page.