Can I Afford To Run Ads?

Enter your product costs and expected ROAS. Get your break-even point, safety margin, and projected profit instantly — before you spend a dollar on ads.

Product

$
$
$

Platform

Platform fee: Shopify Basic (2.9% + 0.30)

Ad Settings

$
x

Ad Channel

Channel affects guidance, not calculation

Currency

Break-Even ROAS

1.78x

Your ROAS

3.5x

+1.72x safety margin

Projections

Projected Revenue

$1750

Projected Units

58

Projected Costs

$768

Ad Profit

$482

Max Bid Recommendations

Max CPC

$0.42

Max CPM

$5.05

Based on 2.5% conversion rate and 1.2% CTR

Next decision: scale

Current modeled impact: $481.75

If ads can work at all, the next question is how much headroom you have before scaling becomes dangerous.

Did this help you evaluate whether your ads can be profitable?

How it works

Break-even ROAS is the minimum return you need to cover your product costs (COGS, shipping, platform fees). It's calculated as: 1 ÷ Gross Margin.

The ROAS buffer tells you how much room you have before you start losing money. A buffer below 0.5x is risky — small ROAS fluctuations can wipe out your profit.

Key Terms

Related Guides

Next Decision

Keep moving through the operating model instead of treating this tool as a one-off calculation.

Check Scale Potential

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