Free calculator
Break-Even ROAS Calculator
Find the return on ad spend your campaigns need before they stop losing money on each sale. You choose which costs count, and the calculator shows the minimum ROAS, the most you can spend on ads per sale, and what break-even still leaves uncovered.
What ROAS do my ads need to cover their costs?
What the customer pays, excluding sales tax
Anything else that rises with each sale
After advertising; gives a target ROAS
Nothing is saved or sent anywhere.
Result
Enter your numbers
The formula
Contribution per sale = revenue per sale − costs per saleBreak-even ROAS = revenue per sale ÷ contribution per saleMax ad cost per sale = contribution per saleEquivalently, break-even ROAS is 1 ÷ contribution margin. The contribution is what a sale leaves to pay for advertising; at break-even, ads use all of it.
Worked example
You sell at $100. The product costs $40, fees are $3 and fulfilment $7, so each sale leaves a contribution of $50 — a 50% contribution margin.
Break-even ROAS is 100 ÷ 50 = 2x, and you can spend up to $50 on ads to win each sale. To keep $10 per sale after ads, you need 100 ÷ 40 = 2.5x.
What the result means — and what it does not
- Break-even covers only the costs you entered and the ad spend. Rent, salaries, software, other marketing and taxes are not covered.
- Refunds, returns and discounts reduce real revenue; include their average cost per sale if they are significant.
- Compare it with ROAS measured on the same basis — attributed revenue excluding sales tax.
Common questions
What does break-even ROAS mean?
It is the return on ad spend at which a sale exactly pays for the costs you entered and the advertising that won it, leaving nothing over. Below it, each ad-driven sale loses money on those costs; above it, it adds contribution towards overhead and profit.
Which costs should I include?
Costs that rise with every sale: the product or materials, payment and marketplace fees, shipping and packaging, and any per-sale labour. Fixed costs such as rent and salaries stay out; they are what the contribution above break-even has to pay for.
Why is my break-even ROAS so high?
Break-even ROAS is 1 divided by your contribution margin. A 50% contribution margin needs 2x; a 20% margin needs 5x. Low-margin products need much stronger ad performance — or a higher price, a larger basket or lower costs.
Is ROAS above break-even profitable?
Profitable on the costs you included, yes. Whether the business makes a net profit also depends on overhead and every sale that did not come from ads.