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Break Even ROAS Calculator

Work out break even roas instantly with clear inputs, formula shown and shareable results.

About Break Even ROAS Calculator

Break-even return on ad spend is the reciprocal of gross margin: at a 45% margin every unit of spend must return about 2.2 units of revenue. Adding a profit target raises the required return sharply.

Formula

Break-even ROAS

Break-even = 1 / gross margin; target = 1 / (gross margin - target margin)

Worked example

With the default values below, Break Even ROAS Calculator returns Break-Even Return On Ad Spend of 2.2222. Change any input above and every figure here is recalculated in your browser.

Inputs used

Gross Marginaccepts 1–100 %
45 %
Planned Ad Spendminimum 0
500,000
Target Profit Margin On Ad Revenueaccepts 0–60 %
10 %

Results

Break-Even Return On Ad Spend
2.2222
Return On Ad Spend For The Target Margin
2.8571
Revenue Needed To Break Even
$1,111,111.11
Revenue Needed For The Target Margin
$1,428,571.43

Step by step

  1. 1Values used
  2. 2Break-even ROAS
  3. 3Break-Even Return On Ad Spend= 2.2222
  4. 4Return On Ad Spend For The Target Margin= 2.8571
  5. 5Revenue Needed To Break Even= 1,111,111.11
  6. 6Revenue Needed For The Target Margin= 1,428,571.43

Assumptions and limits

  • The result is derived only from the 3 inputs listed above. Anything not among them is not part of the calculation.
  • In particular, this calculator does not take inflation, tax, fees or charges or compounding frequency into account.
  • Figures are rounded for display to 4 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
  • Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
  • This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.

Frequently Asked Questions

Why do low-margin businesses need such high returns?

Because each sale contributes little. A 20% margin needs a five-times return before advertising pays for itself.

Should this use gross or contribution margin?

Contribution margin, after fulfilment, payment fees and expected returns, is the more accurate basis.

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