Free Break-Even ROAS Calculator
Calculate the minimum return on ad spend required to cover variable costs and reach a desired profit margin.
Turn this result into an AI action plan
A short summary, one what-if scenario, and prioritized next steps based on the numbers above.
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How to use the Break-Even ROAS Calculator
This calculator answers the planning question a basic ROAS report cannot: how much attributed revenue is needed before a campaign covers its variable economics.
Use contribution margin
Only the share of revenue left after non-ad variable costs can fund acquisition and profit.
Compare with reported performance
Use the ROAS Calculator to compare current campaign performance with this minimum threshold.
Break-Even ROAS Formula
| Gross margin | Other variable costs | Available for ads | Break-even ROAS |
|---|---|---|---|
| 65% | 20% | 45% | 2.22× |
Break-Even ROAS Calculator FAQs
How is break-even ROAS calculated?
Divide one by the contribution-margin percentage available before advertising. A 25% available margin produces a 4× break-even ROAS.
Why is gross margin important?
ROAS reports revenue efficiency, not profit. Lower gross margin leaves less revenue available to pay for advertising.
How do refunds affect minimum ROAS?
A refund allowance reduces contribution margin and increases the ROAS required to break even.
Is platform ROAS the same as profitable ROAS?
No. Platform ROAS depends on attribution, while profitable ROAS also depends on product and operating economics.