Break-even ROAS Calculator
Find the minimum return on ad spend you need to stay profitable, how much you can afford per sale or lead, and the ROAS you need for your profit goal.
- Profit before ads-
- Margin before ads-
- Max ad cost per sale-
- Max cost per lead-
- Fees per sale-
ROAS Needed for Your Profit Goal
Breaking even is the minimum. Here is the ROAS you need to keep a set share of each sale as profit after ad costs.
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What Is Break-even ROAS?
ROAS, or return on ad spend, is the revenue your ads bring in for every unit of money you spend on them. Break-even ROAS is the point where that revenue exactly covers your product costs, fees and ad spend, leaving no profit and no loss. Any ROAS above it means profit, and anything below it means you are losing money on each sale.
How to Calculate Break-even ROAS
First, work out your profit per sale before ad costs: your selling price minus product cost, shipping, payment fees and any other costs. Then divide your selling price by that profit.
Break-even ROAS = Selling price ÷ Profit before ad costs
For example, if you sell a product for 50 and keep 25 after all costs, your break-even ROAS is 50 ÷ 25 = 2.0x. You need at least 2 in revenue for every 1 you spend on ads.
Break-even ROAS for Service Businesses
If you sell services, use the average value of a client instead of a product price, and your cost to deliver the service instead of product costs. Because not every lead becomes a client, the calculator also uses your close rate to show the most you can pay for a single lead and still break even.
Why Many Advertisers Get This Wrong
- Leaving out shipping, payment fees or returns, which makes profit look higher than it is.
- Judging ads by ROAS alone without knowing their own break-even point.
- Treating break-even as the goal instead of the minimum.
Once you know your target ROAS, plan your spend with our Ad Budget Calculator.
Frequently Asked Questions
What is a good ROAS?
There is no single good number. A good ROAS is one that sits comfortably above your own break-even ROAS, which depends on your prices and costs.
Should I include returns and refunds?
Yes. Add the average cost of returns per sale to "Other costs per sale" for a more realistic result.
Why does the table say "Not possible"?
It means your profit before ads is smaller than the profit goal, so no ROAS can reach it. Lower your costs or raise your price to make that goal possible.
Does the calculator convert currencies?
No. The currency only changes the symbol. Enter every value in the same currency for correct results.
Want to Scale Profitably?
Talk to our team about getting your ad account set up properly before you increase your budget.