Find the revenue a campaign must generate simply to cover its cost at your gross margin.
Only the gross margin share of revenue pays for the campaign, so break-even revenue is the cost divided by the margin. The same relationship inverted gives break-even ROAS — at a 60% margin you need 1.67x, not 1x. Teams that target a ROAS of 1 are losing money on every sale; the break-even figure depends entirely on margin and is the only correct floor for a bid strategy.
Marketing ROI Break-Even
Break-even revenue = campaign cost ÷ gross margin; break-even ROAS = 1 ÷ gross margin
Break-even revenue = campaign cost ÷ gross margin; break-even ROAS = 1 ÷ gross margin Only the gross margin share of revenue pays for the campaign, so break-even revenue is the cost divided by the margin. The same relationship inverted gives break-even ROAS — at a 60% margin you need 1.67x, not 1x.
Teams that target a ROAS of 1 are losing money on every sale; the break-even figure depends entirely on margin and is the only correct floor for a bid strategy.
This calculator takes 4 inputs: Total campaign cost, Gross margin on the revenue, Average order value, Expected conversion rate. The pre-filled defaults are a realistic starting point — replace them with figures from your own environment for a result you can act on.