Break-Even ROAS Calculator
Find the minimum ROAS you need to be profitable.
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Understanding Break-Even ROAS
What is Break-Even ROAS?
Break-Even Return On Ad Spend (ROAS) is the point at which your advertising campaigns are generating just enough revenue to cover their own costs. It’s not about making a profit; it’s about not losing money. Knowing this number is the first step to running profitable ad campaigns.
Why is This Metric So Important?
- Sets a Clear Goal: It gives you a specific, non-negotiable target for your campaigns. Any ROAS below this number is unprofitable.
- Informs Bidding Strategy: It helps you decide how much you can afford to bid for clicks or impressions while remaining profitable.
- Justifies Ad Spend: It provides a clear benchmark to stakeholders to show that the advertising budget is being spent responsibly.
How to Use Your Result
Your break-even ROAS is your baseline. For example, if your result is 400% (or 4:1), it means you must generate $4 in revenue for every $1 you spend on ads just to cover your costs. Your goal should be to achieve a ROAS significantly above this number to ensure your campaigns are actually profitable.