BEROAS Calculator
The BEROAS calculator assists you in determining the necessary selling price and cost of your product to maintain a break-even return on ad spend (BEROAS). On the dashboard, the blue areas represent results that fall below your target BEROAS, while the red areas indicate successful outcomes that exceed the targeted value.
What Does (BEROAS) Mean?
BEROAS stands for Break-Even Return On Ad Spend and is a marketing metric that is not commonly discussed. Instead, the term more frequently encountered is Return On Ad Spend (ROAS), which indicates the revenue generated for each dollar spent on advertising. The question of profitability, however, remains open for discussion. This is where the significance of break-even ROAS comes into play. Once it is calculated, marketers can ascertain the minimum ROAS that their campaigns must achieve in order to be profitable.
How To Calculate(BEROAS)?
To determine the break-even Return On Ad Spend (ROAS) for your product, an equation must be utilized. This will provide a target figure that must be reached, signifying when a campaign is yielding profitability.
BEROAS is calculated as follows:
BEROAS= Selling Price / BECPA
For reference, BECPA is determined using the formula:
BECPA=Selling Price−Cost of Goods Sold
For detailed calculations of BECPA and BEROAS, one may consult the profit margin analyzer section.
Our (BEROAS) Calculator
Product Selling Price - The price at which you have listed your product or service for sale.
Product Cost - The expenses related to your product, such as the Cost of Goods Sold (COGS), shipping, and processing fees.
Target BEROAS - The break-even Return On Ad Spend (ROAS) you aim to achieve for your product.
Calculated BEROAS - The current break-even ROAS for your product, based on its selling price and associated costs.
