Break-Even ROAS Calculator.
The ROAS where your ads stop losing money, and the higher target you need to actually make a profit. Enter your order value and margin.
Set your tROAS at or above the target figure, never at break-even.
Break-even ROAS formula
Break-even ROAS = 1 ÷ contribution margin. At a 40% margin, every $1 of ad spend has to bring back $2.50 in revenue (1 ÷ 0.40 = 2.5x) just to cover the product cost and the ad. That is the zero-profit line, not a goal.
Target ROAS = 1 ÷ (contribution margin − target profit). If you want 10% of revenue left over after ad spend, the same 40% margin needs 1 ÷ 0.30 = 3.33x. The max CPA works the same way: an $80 order at 40% margin can afford $32 per purchase before it loses money, and $24 if you want that 10% profit.
Use contribution margin, not gross margin. Shipping, payment fees and returns come out of every order, and leaving them out sets a break-even figure that is too low. Our glossary entry on break-even ROAS covers the definition, and the ROAS calculator checks your current ROAS against this line.
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