{
  "title": "Advertising break-even calculator",
  "human_url": "https://happytails.ai/en/business-tools/advertising-break-even-calculator/",
  "agent_url": "https://happytails.ai/agents/en/business-tools/advertising-break-even-calculator/",
  "language": "en",
  "markdown_url": "https://happytails.ai/en/business-tools/advertising-break-even-calculator.md",
  "content": "Advertising break-even calculator\nWork out the most you can spend on ads for each order and still break even, from your order value, product cost, shipping and payment fees. See break-even and target CPA, ROAS, ACoS and cost per click.\nHow can we improve this tool?\nReport a problem or share an idea.\nPlease leave out private information. Your message and the tool name go to our team via PostHog.\nHow to use Advertising break-even calculator\nEnter your average order value and what each order costs you in products, shipping and payment fees.\nEnter the profit you want to keep after ads, your click to order conversion rate and orders per customer.\nList the ROAS levels you want to test.\nCalculate, compare the break-even and target figures, then download the report.\nUseful next steps\nBreak even\nCustomer acquisition cost calculator\nMargin\nContribution per order\nContribution per order is the order value minus product cost, shipping and handling, and payment fees. This is the unit contribution used for break-even analysis in Marketing Metrics by Farris, Bendle, Pfeifer and Reibstein (2nd edition, Pearson, 2010). It is the most you can pay in advertising for one order and still break even, so it is your break-even cost per acquisition (CPA). In the example, an 85.00 order with 34.00 of product cost, 9.50 of shipping and handling and 2.9% payment fees (2.465) leaves 39.035, shown as 39.04. Because the break-even CPA is a limit, it is rounded down to 39.03, so paying it never loses money.\nBreak-even ROAS, ACoS and cost per click\nROAS is revenue divided by ad spend, as in the Google Ads Help page About Target ROAS bidding (retrieved 16 October 2026). Spending the whole contribution on each order gives a break-even ROAS of the order value divided by the contribution: 85 divided by 39.035 is about 2.1775, shown rounded up as 2.18. ACoS is ad spend divided by ad revenue, as defined by Amazon Ads in What is advertising cost of sales (retrieved 16 October 2026), so break-even ACoS equals the contribution margin, 45.92% here. Break-even cost per click is the break-even CPA times your click to order conversion rate: 39.035 times 2.5% is 0.975875, shown rounded down as 0.97. Every cost limit is rounded down and every ROAS limit up, whatever rounding mode you choose.\nTarget profit and repeat orders\nThe target figures first keep the share of the order value you want as profit after ads. With a 10% target, the target CPA is 39.035 minus 8.50, or 30.535, shown rounded down as 30.53, and the target ROAS is 85 divided by 30.535, shown rounded up as 2.79. The ROAS table shows the profit per order at each ROAS you list. If customers order more than once, the acquisition cost you can afford per customer is the cost per order times the orders per customer, without discounting later orders, so check it against your real repeat rate. Fixed overheads, returns and taxes are not included unless you add them to the costs per order.",
  "content_format": "text/plain",
  "visibility": "public",
  "links": [
    {
      "name": "Break even",
      "url": "https://happytails.ai/en/calculators/break-even/"
    },
    {
      "name": "Customer acquisition cost calculator",
      "url": "https://happytails.ai/en/calculators/customer-acquisition-cost-calculator/"
    },
    {
      "name": "Margin",
      "url": "https://happytails.ai/en/calculators/margin/"
    }
  ],
  "tool": {
    "id": "advertising-break-even-calculator",
    "category": "business-tools",
    "built": true,
    "requirements": "Order value from 0.01 to 1,000,000,000 and each cost per order up to 1,000,000,000, with no more decimal places than the currency uses. Fees and target profit from 0 to 100 percent, conversion rate from 0.001 to 100 percent, 1 to 1,000 orders per customer and up to 10 ROAS levels from 0.01 to 1,000. Calculated on your device. Download a JSON report and CSV files.",
    "implementation": {
      "fields": [
        {
          "key": "averageOrderValue",
          "label": "Average order value",
          "value": "85.00",
          "help": "Revenue per order after discounts, without sales tax or VAT.",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "productCost",
          "label": "Product cost per order",
          "value": "34.00",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "fulfilmentCost",
          "label": "Shipping, packing and handling cost per order",
          "value": "9.50",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "paymentFeeRate",
          "label": "Payment fees (% of order value)",
          "value": "2.9",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "targetProfitRate",
          "label": "Profit to keep after ads (% of order value)",
          "value": "10",
          "help": "Enter 0 to see only the break-even figures.",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "conversionRate",
          "label": "Click to order conversion rate (%)",
          "value": "2.5",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "ordersPerCustomer",
          "label": "Orders per customer over their lifetime",
          "value": "1.6",
          "help": "Use 1 to judge each first order on its own.",
          "type": "text",
          "inputMode": "decimal",
          "maxLength": 32
        },
        {
          "key": "roasLevels",
          "label": "ROAS levels to test",
          "value": "2; 3; 4; 5",
          "help": "Revenue per 1 of ad spend. Separate values with semicolons or spaces.",
          "type": "text",
          "maxLength": 600
        },
        {
          "key": "currency",
          "label": "Currency code",
          "value": "USD",
          "type": "text",
          "maxLength": 3,
          "autoCapitalize": "characters"
        },
        {
          "key": "precision",
          "label": "Currency decimal places",
          "value": "2",
          "type": "select",
          "values": [
            "0",
            "1",
            "2",
            "3",
            "4",
            "5",
            "6"
          ]
        },
        {
          "key": "rounding",
          "label": "Rounding",
          "value": "half-up",
          "type": "select",
          "values": [
            "half-up",
            "half-even",
            "half-down",
            "down",
            "up",
            "floor",
            "ceiling"
          ],
          "labels": {
            "half-up": "Half up (ties away from zero)",
            "half-even": "Half even (ties to even)",
            "half-down": "Half down (ties toward zero)",
            "down": "Toward zero (truncate)",
            "up": "Away from zero",
            "floor": "Toward negative infinity",
            "ceiling": "Toward positive infinity"
          }
        }
      ],
      "registrationFamily": "commerce-margins",
      "presentation": "metrics",
      "note": "Contribution per order is the order value minus product cost, shipping and handling, and payment fees. That contribution is the most you can spend on ads for one order and still break even. Results are rounded only when shown: ad cost limits are rounded down and ROAS limits up, so a limit shown never loses money or misses your target. Processing stays on your device.",
      "input": false,
      "experience": {
        "automatic": false,
        "single": false,
        "inputMaxLength": 1000000,
        "inputMode": "text",
        "label": "Your text",
        "placeholder": "Type or paste your input…",
        "help": "Up to 1,000,000 characters. Review the settings before running.",
        "action": null
      },
      "mode": "explicit",
      "interactive": false
    },
    "execution": "Browser interface",
    "api": null,
    "browser_agent": {
      "supported": true,
      "name": "run_current_tool",
      "discovery": "WebMCP on the human page in a supporting browser",
      "verification": "See audit/API-AUDIT.md; availability is not verification"
    }
  },
  "markdown": "# Advertising break-even calculator\n\n- Human page: https://happytails.ai/en/business-tools/advertising-break-even-calculator/\n- Markdown: https://happytails.ai/en/business-tools/advertising-break-even-calculator.md\n- Structured JSON: https://happytails.ai/agents/en/business-tools/advertising-break-even-calculator/index.json\n- Visibility: public\n\n## Tool capabilities\n\n| Property | Value |\n| --- | --- |\n| Tool ID | `advertising-break-even-calculator` |\n| Category | business-tools |\n| Implementation | Registered implementation. Registration alone is not a production-quality guarantee. |\n| Browser execution | Use the visible action or interactive controls. |\n| Browser processing | Browser; see tool notes for network behavior. |\n| HTTP API | Not callable through HTTP. |\n| Browser-agent interface | run_current_tool |\n\n### Implementation notes\n\nContribution per order is the order value minus product cost, shipping and handling, and payment fees. That contribution is the most you can spend on ads for one order and still break even. Results are rounded only when shown: ad cost limits are rounded down and ROAS limits up, so a limit shown never loses money or misses your target. Processing stays on your device.\n\n### Inputs and settings\n\nNo free-text input is required. Use the file inputs and/or settings below.\n\n| Setting | Meaning | Control type | Default | Constraints |\n| --- | --- | --- | --- | --- |\n| `averageOrderValue` | Average order value | text | \"85.00\" |  |\n| `productCost` | Product cost per order | text | \"34.00\" |  |\n| `fulfilmentCost` | Shipping, packing and handling cost per order | text | \"9.50\" |  |\n| `paymentFeeRate` | Payment fees (% of order value) | text | \"2.9\" |  |\n| `targetProfitRate` | Profit to keep after ads (% of order value) | text | \"10\" |  |\n| `conversionRate` | Click to order conversion rate (%) | text | \"2.5\" |  |\n| `ordersPerCustomer` | Orders per customer over their lifetime | text | \"1.6\" |  |\n| `roasLevels` | ROAS levels to test | text | \"2; 3; 4; 5\" |  |\n| `currency` | Currency code | text | \"USD\" |  |\n| `precision` | Currency decimal places | select | \"2\" | Allowed: 0, 1, 2, 3, 4, 5, 6 |\n| `rounding` | Rounding | select | \"half-up\" | Allowed: half-up, half-even, half-down, down, up, floor, ceiling |\n\n### Browser-agent workflow\n\n1. Open the human page in a browser that supports WebMCP.\n2. Discover the interface exposed by that page; use its actual schema.\n3. Select files on the page first when the tool requires files.\n4. Call `run_current_tool` with valid input and settings.\n5. Inspect the returned result or error and the displayed output. Retrieve files from the displayed download links.\n\nCalls do not automatically copy or download results. Browser permissions still apply. Interface availability alone is not proof of successful execution.\n\n### Planning specification\n\nOrder value from 0.01 to 1,000,000,000 and each cost per order up to 1,000,000,000, with no more decimal places than the currency uses. Fees and target profit from 0 to 100 percent, conversion rate from 0.001 to 100 percent, 1 to 1,000 orders per customer and up to 10 ROAS levels from 0.01 to 1,000. Calculated on your device. Download a JSON report and CSV files.\n\nThis describes intended requirements. Use the implementation notes, interface schema and observed output to determine current support.\n\n### Complete machine-readable capability record\n\n```json\n{\n  \"id\": \"advertising-break-even-calculator\",\n  \"category\": \"business-tools\",\n  \"built\": true,\n  \"requirements\": \"Order value from 0.01 to 1,000,000,000 and each cost per order up to 1,000,000,000, with no more decimal places than the currency uses. Fees and target profit from 0 to 100 percent, conversion rate from 0.001 to 100 percent, 1 to 1,000 orders per customer and up to 10 ROAS levels from 0.01 to 1,000. Calculated on your device. Download a JSON report and CSV files.\",\n  \"implementation\": {\n    \"fields\": [\n      {\n        \"key\": \"averageOrderValue\",\n        \"label\": \"Average order value\",\n        \"value\": \"85.00\",\n        \"help\": \"Revenue per order after discounts, without sales tax or VAT.\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"productCost\",\n        \"label\": \"Product cost per order\",\n        \"value\": \"34.00\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"fulfilmentCost\",\n        \"label\": \"Shipping, packing and handling cost per order\",\n        \"value\": \"9.50\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"paymentFeeRate\",\n        \"label\": \"Payment fees (% of order value)\",\n        \"value\": \"2.9\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"targetProfitRate\",\n        \"label\": \"Profit to keep after ads (% of order value)\",\n        \"value\": \"10\",\n        \"help\": \"Enter 0 to see only the break-even figures.\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"conversionRate\",\n        \"label\": \"Click to order conversion rate (%)\",\n        \"value\": \"2.5\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"ordersPerCustomer\",\n        \"label\": \"Orders per customer over their lifetime\",\n        \"value\": \"1.6\",\n        \"help\": \"Use 1 to judge each first order on its own.\",\n        \"type\": \"text\",\n        \"inputMode\": \"decimal\",\n        \"maxLength\": 32\n      },\n      {\n        \"key\": \"roasLevels\",\n        \"label\": \"ROAS levels to test\",\n        \"value\": \"2; 3; 4; 5\",\n        \"help\": \"Revenue per 1 of ad spend. Separate values with semicolons or spaces.\",\n        \"type\": \"text\",\n        \"maxLength\": 600\n      },\n      {\n        \"key\": \"currency\",\n        \"label\": \"Currency code\",\n        \"value\": \"USD\",\n        \"type\": \"text\",\n        \"maxLength\": 3,\n        \"autoCapitalize\": \"characters\"\n      },\n      {\n        \"key\": \"precision\",\n        \"label\": \"Currency decimal places\",\n        \"value\": \"2\",\n        \"type\": \"select\",\n        \"values\": [\n          \"0\",\n          \"1\",\n          \"2\",\n          \"3\",\n          \"4\",\n          \"5\",\n          \"6\"\n        ]\n      },\n      {\n        \"key\": \"rounding\",\n        \"label\": \"Rounding\",\n        \"value\": \"half-up\",\n        \"type\": \"select\",\n        \"values\": [\n          \"half-up\",\n          \"half-even\",\n          \"half-down\",\n          \"down\",\n          \"up\",\n          \"floor\",\n          \"ceiling\"\n        ],\n        \"labels\": {\n          \"half-up\": \"Half up (ties away from zero)\",\n          \"half-even\": \"Half even (ties to even)\",\n          \"half-down\": \"Half down (ties toward zero)\",\n          \"down\": \"Toward zero (truncate)\",\n          \"up\": \"Away from zero\",\n          \"floor\": \"Toward negative infinity\",\n          \"ceiling\": \"Toward positive infinity\"\n        }\n      }\n    ],\n    \"registrationFamily\": \"commerce-margins\",\n    \"presentation\": \"metrics\",\n    \"note\": \"Contribution per order is the order value minus product cost, shipping and handling, and payment fees. That contribution is the most you can spend on ads for one order and still break even. Results are rounded only when shown: ad cost limits are rounded down and ROAS limits up, so a limit shown never loses money or misses your target. Processing stays on your device.\",\n    \"input\": false,\n    \"experience\": {\n      \"automatic\": false,\n      \"single\": false,\n      \"inputMaxLength\": 1000000,\n      \"inputMode\": \"text\",\n      \"label\": \"Your text\",\n      \"placeholder\": \"Type or paste your input…\",\n      \"help\": \"Up to 1,000,000 characters. Review the settings before running.\",\n      \"action\": null\n    },\n    \"mode\": \"explicit\",\n    \"interactive\": false\n  },\n  \"execution\": \"Browser interface\",\n  \"api\": null,\n  \"browser_agent\": {\n    \"supported\": true,\n    \"name\": \"run_current_tool\",\n    \"discovery\": \"WebMCP on the human page in a supporting browser\",\n    \"verification\": \"See audit/API-AUDIT.md; availability is not verification\"\n  }\n}\n```\n\n## Page guide\n\nWork out the most you can spend on ads for each order and still break even, from your order value, product cost, shipping and payment fees. See break-even and target CPA, ROAS, ACoS and cost per click.\n\nHow can we improve this tool?\n\nReport a problem or share an idea.\n\nPlease leave out private information. Your message and the tool name go to our team via PostHog.\n\n### How to use Advertising break-even calculator\n\n1. Enter your average order value and what each order costs you in products, shipping and payment fees.\n2. Enter the profit you want to keep after ads, your click to order conversion rate and orders per customer.\n3. List the ROAS levels you want to test.\n4. Calculate, compare the break-even and target figures, then download the report.\n\n## Useful next steps\n\n- [Break even](https://happytails.ai/en/calculators/break-even/) ([Markdown](https://happytails.ai/en/calculators/break-even.md))\n\n- [Customer acquisition cost calculator](https://happytails.ai/en/calculators/customer-acquisition-cost-calculator/) ([Markdown](https://happytails.ai/en/calculators/customer-acquisition-cost-calculator.md))\n\n- [Margin](https://happytails.ai/en/calculators/margin/) ([Markdown](https://happytails.ai/en/calculators/margin.md))\n\n## Contribution per order\n\nContribution per order is the order value minus product cost, shipping and handling, and payment fees. This is the unit contribution used for break-even analysis in Marketing Metrics by Farris, Bendle, Pfeifer and Reibstein (2nd edition, Pearson, 2010). It is the most you can pay in advertising for one order and still break even, so it is your break-even cost per acquisition (CPA). In the example, an 85.00 order with 34.00 of product cost, 9.50 of shipping and handling and 2.9% payment fees (2.465) leaves 39.035, shown as 39.04. Because the break-even CPA is a limit, it is rounded down to 39.03, so paying it never loses money.\n\n### Break-even ROAS, ACoS and cost per click\n\nROAS is revenue divided by ad spend, as in the Google Ads Help page About Target ROAS bidding (retrieved 16 October 2026). Spending the whole contribution on each order gives a break-even ROAS of the order value divided by the contribution: 85 divided by 39.035 is about 2.1775, shown rounded up as 2.18. ACoS is ad spend divided by ad revenue, as defined by Amazon Ads in What is advertising cost of sales (retrieved 16 October 2026), so break-even ACoS equals the contribution margin, 45.92% here. Break-even cost per click is the break-even CPA times your click to order conversion rate: 39.035 times 2.5% is 0.975875, shown rounded down as 0.97. Every cost limit is rounded down and every ROAS limit up, whatever rounding mode you choose.\n\n### Target profit and repeat orders\n\nThe target figures first keep the share of the order value you want as profit after ads. With a 10% target, the target CPA is 39.035 minus 8.50, or 30.535, shown rounded down as 30.53, and the target ROAS is 85 divided by 30.535, shown rounded up as 2.79. The ROAS table shows the profit per order at each ROAS you list. If customers order more than once, the acquisition cost you can afford per customer is the cost per order times the orders per customer, without discounting later orders, so check it against your real repeat rate. Fixed overheads, returns and taxes are not included unless you add them to the costs per order.\n"
}