Break-Even ROAS Calculator
Find the minimum ROAS you need to break even based on your profit margins.
Enter Your Costs
Average order value or product price
Cost of goods sold per unit
Shipping, packaging, payment fees per order
Your Results
Break-Even ROAS
—
Minimum ROAS to cover costs
Recommended Target ROAS
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With 20% profit buffer
Gross Profit
$0.00
Gross Margin
0.0%
Your costs exceed your selling price. You need to increase prices or reduce costs.
How Break-Even ROAS Works
Break-Even ROAS = 1 ÷ Gross Margin %
Example: If your gross margin is 40% (0.40), your break-even ROAS is 1 ÷ 0.40 = 2.5x. This means you need to generate $2.50 in revenue for every $1 spent on ads just to cover your product costs. Anything above this is profit.
Margin & Break-Even ROAS Guide
| Gross Margin | Break-Even ROAS | Target ROAS (20% profit) | Assessment |
|---|---|---|---|
| 20% | 5.00x | 6.00x | Very challenging |
| 30% | 3.33x | 4.00x | Challenging |
| 40% | 2.50x | 3.00x | Achievable |
| 50% | 2.00x | 2.40x | Good |
| 60% | 1.67x | 2.00x | Excellent |
| 70% | 1.43x | 1.71x | Premium |
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