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Break-Even ROAS Calculator

The ROAS you need just to break even, from your gross margin.

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Gross margin is what is left of an order after the cost of the goods themselves, before any advertising.

Break-even ROAS

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Target ROAS for desired profit—
Maximum cost per acquisition—

Quick Tool Overview

The Break-Even ROAS Calculator turns your gross margin into the ROAS a campaign needs just to wash its face, plus the higher target ROAS a profit goal requires and the maximum cost per acquisition.

What it does
Calculates break-even and target ROAS from gross margin
You give it
Gross margin %, a desired profit margin, and optional order value
You get back
Break-even ROAS, target ROAS and maximum cost per acquisition
Best for
Knowing the line below which more ad spend loses money
Marketing Tools Free, unlimited use No sign-up Runs in your browser

About the Break-Even ROAS Calculator

A 3x ROAS is excellent on an 80% margin and loses money on a 25% one. Break-even ROAS is simply the inverse of your gross margin, and knowing it changes how every campaign report reads — because below that line, more spend means more loss, no matter how healthy the revenue looks.

Enter your gross margin percentage and the calculator returns the ROAS at which a campaign exactly washes its face. Add a desired profit margin on ad spend and it works out the target ROAS you should actually be bidding towards, which is always higher than break-even.

Enter an average order value as well and it converts both figures into a maximum cost per acquisition — the number that is easiest to hand to whoever is managing the bids.

Key features of the Break-Even ROAS Calculator

Two ROAS targets

The one that breaks even, and the one that actually makes money.

Maximum CPA

Converts both targets into the bid cap a buyer can work with.

Margin sanity check

Warns when a profit goal exceeds the margin available.

Formula shown

Every step is written out with your own numbers in it.

How to use the Break-Even ROAS Calculator

  1. 1

    Enter your gross margin

    Revenue minus cost of goods, as a percentage of revenue.

  2. 2

    Set a target profit margin

    The profit you want on top of covering costs.

  3. 3

    Add average order value

    Optional — it converts the ROAS targets into a maximum cost per acquisition.

  4. 4

    Read both ROAS figures

    Break-even and target, with the formula shown for each.

Frequently asked questions

Break-even ROAS = 1 ÷ Gross margin. A 40% gross margin means 1 ÷ 0.40 = 2.5, so you need 2.5 in revenue for every 1 spent just to cover the ad cost and the goods.

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