Break-Even ROAS Calculator — Free
Find the minimum ROAS you need to cover costs and break even.
Features
- ✓Calculates break-even ROAS from selling price and COGS
- ✓Shows gross margin percentage
- ✓Calculates contribution margin per unit
- ✓Instant result — no formulas to memorize
Benefits
- →Know the exact ROAS floor before launching any campaign
- →Stop scaling campaigns that look profitable but are actually losing money
- →Set data-backed ROAS targets for your media buyer
- →Understand how margin changes affect your minimum viable ROAS
How to Use This Tool
- 1
Enter your product's selling price (the amount customers pay).
- 2
Enter your COGS plus fulfillment costs (the total variable cost per unit).
- 3
Review your contribution margin % and break-even ROAS — that's the minimum your campaigns must hit.
What is Break-Even ROAS?
Break-even ROAS is the minimum return on ad spend needed to cover both your product costs and your ad spend — the point where you're neither making nor losing money. It's calculated from your gross margin: if your product has a 40% gross margin, your break-even ROAS is 1 ÷ 0.40 = 2.5x. Any ROAS above that means you're profitable; below it, you're losing money on every sale.
Why It Matters
Tracking headline ROAS without knowing your break-even point is like driving without knowing how much fuel you have. A 3x ROAS sounds impressive — until you realize your break-even is 3.5x and you're losing money on every order. Break-even ROAS anchors all your campaign decisions: it's the floor your target ROAS must stay above, and it's the first number you should know before launching any paid campaign.