How to use this calculator
Selling Price: What the customer pays on TikTok Shop.
Product Cost: Your landed cost per unit (manufacturing + packaging).
Shipping Cost: Average cost to fulfill one order.
Platform Fee: TikTok Shop takes ~15% on most categories.
Affiliate Commission: What you pay creators per sale (typically 10-20%).
Target Net Margin: The profit you want to keep after all costs including ads.
What is break-even ROAS?
Break-even ROAS tells you the minimum return on ad spend needed to not lose money. If your break-even ROAS is 2.5x, every $1 in ad spend must generate $2.50 in revenue just to cover costs. Anything above that is profit.
What is ACoS?
ACoS (Advertising Cost of Sale) is the inverse of ROAS. A 25% ACoS means you spend $0.25 on ads for every $1 in sales. Lower ACoS = more profitable.
How Avanta uses these numbers
On every client account, we calculate break-even ROAS before spending a single dollar on Spark Ads. This keeps campaigns profitable from day one. Most of our clients run at 4-6x ROAS because we test organically first, then only amplify proven content.