What ROAS do I need to break even?
Find the ROAS you need to cover your costs and make every ad dollar count. A campaign above your break-even ROAS earns contribution profit after advertising. Set your target higher to leave room for fixed overhead and a profit buffer. At a 40% contribution margin, a 3× ROAS produces $6.67 in contribution profit on a $100 order.
The formula, explained.
Contribution margin = net revenue − non-ad variable costs Break-even ROAS = net revenue ÷ contribution margin Maximum CPA = contribution margin
A worked example
How to interpret your result
A campaign above your break-even ROAS earns contribution profit after advertising. Set your target higher to leave room for fixed overhead and a profit buffer. At a 40% contribution margin, a 3× ROAS produces $6.67 in contribution profit on a $100 order.
Common mistakes to avoid
Using gross margin without shipping, payment fees, discounts and expected return losses makes the target look easier than it is. Use the same revenue definition in your ad reporting and this calculator.
Frequently asked questions
What does this result include?
The result includes the inputs shown above and any advanced costs you enter. Fixed overhead and income taxes are excluded unless explicitly allocated in other costs. Check the formula and cost breakdown for the exact scope.
Can I change the assumptions?
Yes. All inputs can be edited, and advanced assumptions are available below the main inputs. Use values from the same period and currency. Changing display currency changes the symbol, not the underlying amount.
Are my financial numbers saved?
No. Calculations happen locally in your browser. Sharing creates a link containing the inputs, and exporting saves a CSV report to your device. You choose whether to share those artifacts.
Learn more about our calculation methodology and estimate limitations.