Free tool
Break-even ROAS calculator
Find the exact ROAS where your ads stop losing money. Enter your costs, and see whether your current ROAS clears the line.
Your costs (% of revenue)
Contribution margin: 46%
Break-even ROAS
Your ROAS is above break-even - profitable
- Contribution margin
- 46%
- Below this ROAS, ads lose money
- 2.17×
How break-even ROAS is calculated
Break-even ROAS = 1 ÷ contribution margin. Your contribution margin is what survives each sale after COGS, shipping and returns. The thinner your margin, the higher the ROAS you need just to break even - which is exactly why two brands with the same ROAS can have opposite profitability. Once you know your floor, measure real profit with the POAS calculator.
Frequently asked questions
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which your ads neither make nor lose money - everything above it is profit, everything below is a loss. It is calculated as 1 ÷ contribution margin. A 46% margin gives a break-even ROAS of 2.17×.
How do you calculate break-even ROAS?
Break-even ROAS = 1 ÷ (contribution margin %). Contribution margin is what is left of each sale after COGS, shipping and returns. If your margin is 50%, your break-even ROAS is 2.0× - you need at least £2 of revenue per £1 of ad spend just to cover costs.
Why does break-even ROAS matter?
It turns a vanity number into a decision threshold. Without it, you cannot tell whether a given ROAS is good or a quiet loss. Knowing your break-even point lets you set realistic targets and spot products or campaigns that look fine on ROAS but are actually underwater.