Ads & Marketing

Break-Even ROAS Calculator

Estimate the ROAS needed for advertising revenue to cover product or service costs and ad spend.

$
$
Product, fulfillment, direct service delivery, payment fees, etc.
$
Gross margin0%
Max ad spend / sale at break-even$0
Break-even ROAS
ROAS for target profit
This is a unit-economics planning tool. Fixed overhead, taxes, returns, refunds, repeat purchases and customer lifetime value can change the true business break-even point.
Advertisement area

How break-even ROAS works

If a $100 sale has $40 in variable cost, $60 remains before advertising. That means the campaign could spend up to $60 to acquire that sale before the first order reaches zero contribution. Revenue divided by that $60 ad spend is about 1.67× break-even ROAS.

Why a lower break-even ROAS can be better

Higher gross margin gives advertising more room. Lower margin means you need more revenue for each advertising dollar just to break even.

More marketing calculators