Break-Even ROAS Calculator
Find the minimum ROAS needed for advertising revenue to cover your variable costs and ad spend.
How to calculate break-even ROAS
Break-even ROAS is the inverse of your contribution margin ratio.
Break-even ROAS = 1 ÷ 0.40 = 2.5x
Why break-even ROAS matters
A campaign can have a positive ROAS and still lose money. Break-even ROAS tells you the minimum advertising return required before considering fixed overhead or profit targets.
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Break-even ROAS FAQ
What costs should I include?
Include variable costs tied to each sale, such as product cost, transaction fees, fulfillment and variable shipping subsidies. Do not include advertising spend itself in the pre-ad contribution margin.
Is break-even ROAS the same as profitable ROAS?
No. Break-even ROAS covers the included variable costs and ad spend. A profitable target usually needs to be higher to cover fixed overhead and desired profit.
What if my contribution margin is 25%?
The break-even ROAS is 4.0x because 1 ÷ 0.25 = 4.