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 %
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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.
More in Universal
All Universal calculators →- CPM (Cost per Mille)CPM is what you pay for every thousand ad impressions.
- CPC (Cost per Click)CPC is the average price you pay each time someone clicks your ad.
- CTR (Click-Through Rate)CTR is the share of impressions that turned into a click.
- CPA (Cost per Acquisition)CPA is what you pay, on average, for each conversion you define as the goal.
- ROAS (Return on Ad Spend)ROAS is the revenue generated for every dollar of advertising.
- ROI (Return on Investment)ROI is the profit or loss on an investment, expressed as a percentage of what it cost.
- Conversion RateConversion rate is the share of clicks that went on to complete your goal action.
- LTV (Customer Lifetime Value)LTV is the total revenue you can expect from a customer over the whole relationship.