GMV Max ROAS & budget calculator
Find the lowest ROAS your TikTok Shop ads can run at without losing money, the GMV Max target that keeps your margin, and the budget you need to reach a sales goal — after TikTok fees, creator commission and returns.
Your ROAS targets
| ROAS | Ad spend / order | Profit / order | Margin |
|---|
Your GMV Max budget
Set your GMV Max ROAS target at or above the break-even figure. Anything below it loses money on every ad-driven order.
How break-even ROAS works
ROAS (return on ad spend) is revenue divided by ad spend. In GMV Max, TikTok optimises toward the ROAS target you set, so the number you type in decides whether ad-driven orders make or lose money.
Example: a product that keeps $7.92 of a $25.00 price before ads breaks even at 3.16× ROAS. Below that, each ad-driven order loses money; to keep a 15% margin you need about 6.0×.
Creator commission matters as much as ad cost: every point of affiliate commission comes out of the same profit pool, so creator-heavy products need a higher ROAS target. Use the commission calculator to find the balance.
Running ads on creators' videos? See how to boost affiliate videos with Spark codes.
How to set a GMV Max budget
Start from the sales you want, not from a round number. At a given ROAS, every unit of ad spend buys a fixed amount of GMV, so the budget follows from the goal:
Example: with the US defaults above, a $7,500 monthly GMV goal at the 6.0× ROAS that keeps a 15% margin needs about $1,250 a month, or $42 a day. Spending more than about $2,380 for the same sales means you're below the 3.16× break-even and losing money on every ad-driven order.
The budget is a ceiling, not a promise: the higher your ROAS target, the harder it is for the campaign to find enough orders, and it may spend less than you allow. If it under-spends, either accept the lower GMV or lower the target, but never below break-even.
Questions
What is a good ROAS for TikTok Shop GMV Max?
There's no universal number — a good ROAS is one above your break-even ROAS. A product with thin margins and high creator commission might need 5× just to break even, while a high-margin product can profit at 2×. Work out yours from price, costs and fees before setting a GMV Max target.
How do I calculate break-even ROAS?
Break-even ROAS = selling price ÷ profit per order before ad spend. Profit before ads is what's left after TikTok's fees, creator commission, product cost, shipping and returns.
What ROAS target should I set in GMV Max?
Set it at or above the ROAS that delivers your target margin, not just break-even. The calculator shows both. Setting the target lower can grow GMV, but every order below break-even loses money.
What is TACoS?
Total advertising cost of sales — ad spend as a percentage of revenue. It's the inverse of ROAS: a 4× ROAS is a 25% TACoS. The break-even TACoS is the most you can spend on ads as a share of sales.
How much budget do I need for GMV Max?
Divide your monthly GMV goal by the ROAS you target, then by 30 for a daily budget. For a $7,500 monthly goal at 6× ROAS that is $1,250 a month, about $42 a day. Make sure the ROAS you plan with is above your break-even ROAS, or the extra sales cost you money.
Do creator commissions affect my ROAS target?
Yes. Commission comes out of the same profit pool as ad spend, so products sold mostly through creators need a higher ROAS target. Adjust the share of creator orders to see the effect.