TikTok Shop ROAS Calculator
What ROAS do you actually need to break even — and what do you keep at your reported ROAS?
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How to read your break-even ROAS
01 / explainerROAS in Ads Manager measures gross revenue per ad dollar — not profit. Three things decide whether a reported ROAS actually makes you money:
Fees come off first
Referral (6%), FBT fulfillment, the $0.30 transaction fee, and creator commissions all come out before ad spend. On a $29.99 product those add up to roughly a third of your revenue before you've paid for the product or the ads.
Break-even ROAS is your floor
It equals 1 ÷ your profit-before-ads margin. If your margin before ads is 50%, you break even at a 2.0x ROAS — anything below that is paid traffic burning cash even though Ads Manager shows a positive ROAS.
Scale only above the floor
Corrected ROAS — revenue minus returns and fee refunds — is what you should scale against. Budget increases are safe only when your reported ROAS clears the break-even line with room for return rates.