Ad Budget Break-Even Calculator
Find how many sales — and how much revenue — you need to recover an ad budget, plus how many for a target profit after ads.
- Free calculator
- Instant estimate
- No signup needed
- Beginner friendly
Enter every amount in the same currency. This selector only changes the symbol shown — it does not convert exchange rates.
Sales to break even
33
After $500.00 ad spend
Revenue to break even
$1,151.32
Contribution per order
$15.20
Before ads
Sales for +$0.00 profit
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Short example
At a $35.00 AOV, $10.00 product, $6.00 shipping/packaging, and ~$3.80 fees, each order contributes ~$15.20. A $500.00 ad budget needs about 33 sales to break even.
All calculations are estimates based on average platform fees. Real profits may vary depending on category, ads, and shipping.
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How to use this calculator
- Enter your numbers in each field above — the calculator updates instantly as you type, so there's nothing to submit.
- Use your real figures when you have them, or sensible estimates while you're planning. If a field doesn't apply, leave it at zero.
- Compare the results, then change one input at a time to see how each lever (price, cost, fees, volume) moves the outcome.
Formula
Fee/order = AOV × Fee% + Fixed · Contribution/order = AOV − Product − Packaging/Shipping − Fee/order · Break-even sales = Ad budget ÷ Contribution/order · Sales for target = (Budget + Target profit) ÷ Contribution/order
Worked example
$500 ad budget, $35 AOV, $10 cost, $6 packaging/shipping, 10% + $0.30 fee.
- Fee/order = $3.80
- Contribution = 35 − 10 − 6 − 3.80 = $15.20
- Break-even = 500 ÷ 15.20 ≈ 33 sales
- Revenue needed ≈ $1,155
Answer: ≈ 33 sales / $1,155 revenue to break even
How it works
Every order contributes something toward the ad budget. If the contribution is at or below zero, no amount of scale rescues the campaign — this is where most 'burn' happens.
How to interpret your results
- Dollar values are shown per sale, per order, or per item unless a result is explicitly labelled monthly, weekly, or daily.
- Percentages (margin, ROI, conversion rate) are easier to compare across products and price points than raw dollars — use them when you benchmark.
- A positive result means you're ahead after the costs and fees you entered. A negative result means the current numbers don't work — change a lever (raise price, cut a cost, lower ad spend) and recalculate.
- Treat the output as a planning estimate, not a guarantee. Fees, taxes, and conversion rates shift over time — re-run the numbers whenever a key input changes.
Common mistakes
- Using target profit before proving break-even is achievable.
- Assuming AOV will rise 'once ads start working' — plan with the current number.
- Forgetting that a fixed fee eats a larger share of a smaller AOV.
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FAQ
- What if contribution is negative?
- Ads can't fix the underlying math. Raise the price, cut cost, or negotiate fees before spending on ads.
- How is this different from CAC/LTV?
- This one is a single-campaign break-even. CAC/LTV models a customer's lifetime value across repeat orders.
Why trust this calculator?
This tool uses standard mathematical formulas and commonly accepted calculation methods, shown openly in the Formula section above so you can verify the math yourself. Results are estimates based on the information you enter and do not account for every individual circumstance. For important financial, tax, legal, medical, or business decisions, please double-check with a qualified professional before acting on the numbers.
Keep going
One calculator rarely tells the full story. Pair this one with a related tool below to pressure-test your numbers from a different angle, or browse Selling & Business Calculators for more in the same category.
What to calculate next
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Order-level profit once ads are allocated per sale.
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Customer acquisition cost, lifetime value, payback period, and LTV:CAC ratio.
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