Business

Break Even ROAS Calculator

The ROAS and CPA you need just to break even.

Enter your values

Results update instantly as you type — no submit needed.

Results
Break-even ROAS
2x
Gross margin
50%
Max CPA
$40.00
Your current ROAS
3x
Status
Profitable — 1x above break-even
Profit at current spend
$2,500.00

Quick answer

Break-even ROAS is 1 ÷ gross margin: at a 40% margin you need 2.5x return on ad spend just to cover product cost and ad spend.

break-even ROAS = 1 ÷ gross margin

At a glance

What it doesThe ROAS and CPA you need just to break even.
CategoryBusiness
Inputs neededAverage order value, Product cost per order, Shipping & fees per order, Current ad spend, Current revenue from ads
Main outputBreak-even ROAS
Formulabreak-even ROAS = 1 ÷ gross margin
CostFree — no sign-up, no download

How to use the Break Even ROAS Calculator

  1. 1Enter your average order value.
  2. 2Enter product cost, shipping and payment fees per order.
  3. 3Add current ad spend and ad revenue to compare.

Inputs explained

Average order value($)
Enter the average order value you are working with.
Product cost per order($)
Enter the product cost per order you are working with.
Shipping & fees per order($)
Enter the shipping & fees per order you are working with.
Current ad spend($)
Enter the current ad spend you are working with.
Current revenue from ads($)
Enter the current revenue from ads you are working with.

Worked example

Using the values the calculator loads with:

Inputs

  • Average order value80 $
  • Product cost per order32 $
  • Shipping & fees per order8 $
  • Current ad spend5000 $
  • Current revenue from ads15000 $

Results

  • Break-even ROAS2x
  • Gross margin50%
  • Max CPA$40.00
  • Your current ROAS3x
  • StatusProfitable — 1x above break-even
  • Profit at current spend$2,500.00

Frequently asked questions

What is a good ROAS?

Anything above your break-even ROAS. A 4x ROAS is poor at a 20% margin and excellent at a 60% margin.

Should break-even ROAS include overhead?

For a true profit target yes — subtract fixed costs per order too, which raises the required ROAS.

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.