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Free tool · Paid ads

Break-even ROAS calculator.

The return your ads need before they make money, from your profit margin, and the most you can pay in ads for each sale.

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  • No sign-up for the resultRun the numbers and see the answer straight away. Email only if you want the full report.
  • The formula shownCalculators show the formula and a worked example, so you can check the maths.
  • What to do nextEach tool reads your result and tells you the next step.
Break-even ROAS2.50x
Break-even ROAS as a percentage250%
Break-even ROAS = 1 / profit margin. Most you can pay per sale = average order value x profit margin.
What this means

Your ads need a ROAS of at least 2.50x to break even.

Anything above this is profit. Compare it with your real ROAS to see whether your campaigns make or lose money.

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Every figure, what it means and what to do next, with a private link you can share with your team.

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The formula

Break-even ROAS = 1 / profit margin. Most you can pay per sale = average order value x profit margin.

A worked example

With a 25% margin, break-even ROAS is 1 / 0.25 = 4x. If your average order is 200, you can pay up to 200 x 0.25 = 50 in ads for each sale before you lose money.

How to read your result

  • Your real ROAS must be above this figure for ads to be profitable.
  • The lower your margin, the higher the return your ads need, and the less room for error.
More free toolsROAS calculatorSee your return on ad spend, the return you need to break even at your margin, and what the ads actually made after their cost.Profit margin calculatorWork out your profit margin and markup from cost and price, and the return any ads need to break even at that margin.Markup calculatorFind your selling price from cost and markup, and see the profit margin that price really gives you.CPA calculatorWork out what each sale or sign-up costs you in ads, and how much profit is left after it.

Break-even ROAS calculator: questions.

Anything else, ask us directly.

How do I calculate break-even ROAS?

Divide 1 by your profit margin as a decimal. A 40% margin gives 1 / 0.40 = 2.5. Your ads must bring in at least 2.5 of revenue for every 1 spent to cover product costs and ad spend.

Which margin should I use?

Use gross margin: the selling price minus the direct cost of the product or service, including delivery and payment fees if you pay them on each sale.

Should I aim exactly for break-even?

Break-even covers product costs and ad spend only, not your other costs. Most businesses set a target ROAS above it to leave profit for overheads.

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