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Universal · Buy-Side calculator

Break-Even ROAS

Break-even ROAS is the return on ad spend at which a campaign exactly covers its product costs.

Formula

Break-even ROAS = 100 ÷ Gross margin %

Fill in any 1 fields. The one you edited longest ago is solved for you.

input
Percent.
waiting
Waiting for the other fields.

Waiting for 1 values to solve Break-even ROAS.

What is Break-even ROAS?

Break-even ROAS is the return on ad spend at which a campaign exactly covers its product costs. Below it you lose money on every sale; above it, ads are paying for themselves.

Worked example

If gross margin is 40%, then Break-even ROAS = 2.50x.

Break-even ROAS = 100 ÷ Gross margin %

Formula variable breakdown

marginGross margin
Enter gross margin directly, or leave it blank and let the solver calculate it from the other field.
beroasBreak-even ROAS(output)
Enter break-even ROAS directly, or leave it blank and let the solver calculate it from the other field.

Tactical application guide

Break-even ROAS and gross margin move in opposite directions: improve one and the other falls. Enter your gross margin to see the Break-even ROAS you must beat, or start from a Break-even ROAS a platform is reporting and solve for the gross margin you would need for it to be profitable.