Find the sales an ad must generate to pay for itself.
An ad breaks even when the profit it generates equals what the campaign cost, which depends on the margin left after product and delivery costs. Comparing projected orders against break-even orders shows instantly whether a campaign has any room to be profitable before it runs.
Ad Break-Even Sales
Break-even sales = ad spend / margin ratio
Break-even sales = ad spend / margin ratio An ad breaks even when the profit it generates equals what the campaign cost, which depends on the margin left after product and delivery costs.
Comparing projected orders against break-even orders shows instantly whether a campaign has any room to be profitable before it runs.
This calculator takes 3 inputs: Ad spend, Product margin, Average order value. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.