Free tool
Break-Even ROAS Calculator
Before you scale ads, know the line they have to clear. This calculator turns your price and costs into a break-even ROAS, a recommended target, and the most you can spend per sale.
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Result
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The break-even ROAS formula
Gross margin = (Price − Total cost) ÷ PriceBreak-even ROAS = 1 ÷ Gross marginThe lower your margin, the higher the ROAS you need just to break even.
Example calculation
You sell a product for $100. Cost of goods is $40, fees are $5 and shipping is $8 — total cost $53. Gross margin is (100 − 53) ÷ 100 = 47%. Break-even ROAS is 1 ÷ 0.47 = 2.13x. Below that, the ads lose money.
What your result means
Any ROAS above your break-even point is profitable on a per-sale basis; anything below loses money. The max ad spend per sale tells you the highest cost-per-acquisition you can tolerate before a sale stops being worth it.
Common mistakes
- Forgetting payment fees and shipping when working out margin.
- Scaling spend with a ROAS below break-even and hoping volume fixes it.
- Ignoring overhead — break-even on product is not break-even on the business.
The number tells you where you are. Not what to do next.
Knowing your break-even line is step one — hitting it consistently is the work.
Cleverlio decides what your business should do this week and writes the work — the posts, the messages, the website copy. You review it and publish it yourself.
See what Cleverlio would doCommon questions
What is break-even ROAS?
Break-even ROAS is the minimum return on ad spend you need just to cover the cost of the product or service you sold. Anything below it means the ad lost money once you account for delivery costs.
How do I calculate break-even ROAS?
First find your gross margin: (price − total cost) ÷ price. Then break-even ROAS = 1 ÷ gross margin. A 50% margin means you break even at a 2x ROAS.
Why is break-even ROAS more useful than ROAS alone?
ROAS on its own ignores your costs. Break-even ROAS tells you the line a campaign must clear to be profitable for your specific margins, so two businesses with the same ROAS can have very different outcomes.
What target ROAS should I aim for?
Aim above break-even so each sale leaves real profit. The recommended target here adds a buffer over break-even, but the right number depends on overhead and how much profit you need per sale.
Does break-even ROAS include overhead?
This calculator covers direct costs — product, fees and shipping. Fixed overhead like rent and salaries is not included, so treat the target ROAS as a floor and aim higher to cover the rest.