This BROAS (break even return on ad spend) calculator shows what your ROAS has to be in order for your specific product selling price and product cost to work for your ad campaigns. If you are above this number - it means you are profitable. You should optimally scale your Ad campaign, if you are below the BROAS number then you are running ads at a loss. You should probably stop the spend or reduce the budget. Alternatively - you can reduce the cost of the product by working with an agent which will give you healthier margins to work with!
- This calculator takes into account the transaction fees (3%) - so it varies from most other calculators online - ROAS is also called 'Conv. value / cost' in Google Ads. The metrics are similarly calculated - We recommend 10-20x of the product selling price should be dedicated as your budget for testing any product using Ads.
You can use this calculator in conjuction with our Facebook Ads or Google Ads Course to understand all the different scaling strategies you can implement once you know this figure.