Break-Even ROAS Calculator

Every margin implies a minimum ROAS. Below it, ads lose money on direct return regardless of how impressive the revenue numbers look. Know your number before judging any campaign.

Inputs

Gross margin

Margin on the products the ads sell, after COGS and variable costs.

Planned ad spend (optional)

Shows the revenue needed at break-even.

Results

Break-even ROAS

2.22×

Revenue needed on planned spend: $11,111
Max CPA as share of AOV: 45.0%

Any ROAS above this number contributes profit; below it, every dollar of spend destroys value.

Formula

Break-Even ROAS = 1 ÷ Gross Margin

FAQ

Which margin should I use?

The contribution margin on ad-sold products: price minus COGS, shipping and fees. Using net margin understates it; using pure markup overstates it.

Does this account for repeat purchases?

No. If LTV is materially higher than first-order value, your effective break-even ROAS is lower — see the LTV calculator to estimate it.