Calculators — Free

Break-Even ROAS Calculator

Break-even ROAS is the single most ignored number in paid media. It's the minimum return your ads must generate just to not lose money — and it's set by your gross margin, not your ambition. Enter your price and product cost (or margin directly) and get your floor.

Include product, payment processing, shipping and fulfillment for an honest number.
Enter your current ROAS to see your cushion above break-even.
Break-even ROAS—Enter your price and cost (or margin) to calculate.

How it works

Break-even ROAS = 1 ÷ gross margin. If you sell at $100 with $40 of product cost, your gross margin is 60% — so your break-even ROAS is 1 ÷ 0.60 = 1.67x. Anything below that and every sale from ads loses money.

Optionally enter your current ROAS and the tool shows your real cushion: how far above (or below) break-even you're actually operating. A brand at 2.5x ROAS with a 1.67x break-even has a 50% profit buffer; the same 2.5x with a 2.2x break-even is one bad week from red.

FAQ

At minimum: product/service cost, payment processing, shipping and fulfillment. The more real costs you include, the more honest your break-even ROAS becomes. Excluding them makes your ads look profitable when they aren't.

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