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Check whether ad revenue covers its cost

Updated 2026-10-01

Margin here is what you keep on a sale after Etsy fees and product costs, before the ad spend. Use the margin calculator if you're not sure.

Etsy Ads$50.00 spent

Sales from those ads$200.00
ACOS (spend ÷ revenue)25.0%
Break-even ROAS2.50×

Return on ad spend

4.00×

Profit after ad cost$30.00

Above break-even — these ads are paying for themselves.

A guide, not advice — ad performance swings week to week. Watch ROAS over time, not on a single day.

Enter ad spend, revenue attributed to those ads, and your margin before advertising. The calculator reports ROAS (revenue ÷ spend), ACOS (spend ÷ revenue), and an estimated profit after ad cost. Attribution is only as reliable as the data you enter.

The break-even check

Break-even ROAS is 1 ÷ pre-ad margin. A product with a 30% margin needs about 3.33× ROAS to cover ad spend. At 3×, each $1 spent brings in $3 of revenue, but 30% of $3 is only $0.90 before the $1 ad cost: an estimated $0.10 loss. If the margin is 40%, the break-even ROAS is 2.5×.

Keep the inputs consistent

Your margin should include product costs and the standard Etsy fees, but exclude the advertising cost you enter separately. If you use an Offsite Ads fee as spend, do not also include it in the margin. For onsite Etsy Ads, use the actual spend and revenue assigned to the period you are studying. Neither method proves the ad caused every attributed sale.

Use the margin calculator to estimate a pre-ad margin and review Etsy’s fee policy for charges that may affect it.

Frequently asked questions

What ROAS breaks even?

Under this simplified model, break-even ROAS is 1 divided by your pre-ad profit margin expressed as a decimal. At 30% margin, that is about 3.33×.

Can I use this for Offsite Ads?

You can compare fee cost with attributed order revenue, but make sure the margin input excludes that same ad fee so it is not counted twice.

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