BEROAS Calculator
The BEROAS calculator shows what your product selling price and product cost need to be in order to remain above your BEROAS (break even return on ad spend). The blue areas are below your target BEROAS and the red are above.
What is BEROAS?
BEROAS stands for Break-even Return On Ad Spend and is a marketing term that is not thrown around a lot. Instead, you will hear more often about Return On Ad Spend (ROAS), which signifies the revenue made for each dollar spent on advertising. However, there is still the question of profitability.
It is at this point that break-even ROAS becomes important. Once calculated, you will know the minimum ROAS your marketing campaigns need to have in order to be profitable.
How is BEROAS calculated?
In order to work out the break-even ROAS for your product, one needs to do an equation. This will give you a target figure that you have to achieve, which will indicate when a campaign is profitable.
BEROAS = Selling Price divided by BECPA
For reference BECPA is calculated with the following formula:
BECPA = Selling Price - COGS
You can also refer to Numbers Breakdown to calculate BECPA and BEROAS.
BEROAS = Selling Price divided by BECPA
Our BEROAS calculator?
- Product selling price - is the price you have listed your product or service for.
- Product cost - is the costs associated with your product, like COGS, shipping, and processing fees.
- Target BEROAS - is the breakeven ROAS you aim to get your product down to.
- Calculated BEROAS - is your current breakeven ROAS your product is at based on the selling price and cost.
