Breakeven & ROAS Calculator
Calculate your Return on Ad Spend (ROAS) and find your break-even point with our free, instant ROAS calculator. No login required.
Breakeven & ROAS Calculator
Calculate your ROAS, break-even point, and total profit by including your profit margin.
Simple ROAS Calculator
Quickly calculate your Return on Ad Spend without profit margin.
Go Beyond Simple ROAS Calculation
Why Use a Break-Even ROAS Calculator?
Clarify True Profitability
A high ROAS doesn't always mean high profit. Our calculator reveals the minimum ROAS you need to actually make money, preventing you from scaling unprofitable campaigns.
Set Smarter Goals
Instead of chasing arbitrary ROAS numbers, you can set clear, data-driven targets that are directly tied to your business's profitability and growth objectives.
Optimize Ad Spend with Confidence
Knowing your break-even point allows you to confidently allocate budget to campaigns, test new channels, and make informed decisions to maximize your marketing ROI.
How to Use Our ROAS Calculator
Enter Campaign Data
Input your total ad revenue and cost. For a profitability analysis, add your average profit margin.
Get Instant Results
Our tool instantly calculates your ROAS, break-even ROAS, and total profit. No waiting, no sign-ups.
Analyze & Optimize
Use the insights to evaluate campaign performance, identify your minimum ROAS for profitability, and optimize your ad spend.
Understanding the Parameters
Total Revenue from Ad Campaign
The total income generated directly from your ad campaign.
Total Cost of Ad Campaign
The total amount spent on the ad campaign.
Profit Margin (%)
Your average profit margin per sale, expressed as a percentage. Formula: ((Revenue - Cost of Goods Sold) / Revenue) * 100.
The Formulas Behind the Calculation
ROAS (Return on Ad Spend)
Measures the gross revenue generated for every dollar spent on advertising.
Total Revenue / Total Ad Cost Example: $10,000 / $2,500 = 4:1 ROAS
Break-Even ROAS
The minimum ROAS required to cover all costs and break even.
1 / Profit Margin Example: 1 / 0.50 = 2:1 Break-Even ROAS
Total Profit
Calculates the actual profit after accounting for both the cost of goods and ad spend.
(Revenue * Profit Margin) - Ad Cost Example: ($10,000 * 0.50) - $2,500 = $2,500 Profit
ROAS Calculation Examples
Example 1: Profitable E-commerce Campaign
An online store runs a campaign with the following results:
Calculation steps
Example 2: Misleading High ROAS
A dropshipping business has a seemingly good ROAS:
Calculation steps
How to Interpret Your ROAS Results
ROAS > Break-Even ROAS (✅ Profitable)
Congratulations, your ad campaign is generating a profit. Consider scaling your ad spend while monitoring performance to maximize returns.
ROAS = Break-Even ROAS (⚖️ Breaking Even)
Your campaign is covering its costs but not generating a profit. This is a good baseline. Look for opportunities to increase revenue or decrease ad costs to improve profitability.
ROAS < Break-Even ROAS (❌ Unprofitable)
Your campaign is currently losing money. It's time to pause, analyze your targeting, ad creative, and landing page, and optimize for a better return before scaling.
Frequently Asked Questions
ROAS stands for Return on Ad Spend. It's a marketing metric that measures the amount of revenue earned for every dollar spent on advertising. It is calculated with the formula: Total Revenue / Total Ad Spend.
A 'good' ROAS depends on your profit margins and industry. A common benchmark is a 4:1 ratio ($4 in revenue for every $1 spent), but our break-even ROAS calculator will tell you the exact minimum ROAS you need to be profitable.
Break-Even ROAS is the point where your ad campaign is neither making a profit nor a loss. The formula is 1 / Your Profit Margin. For example, if your profit margin is 25%, your break-even ROAS is 1 / 0.25 = 4:1.
Yes, our ROAS calculator and break-even calculator are 100% free to use, with no login or registration required. We believe in providing accessible tools for all marketers.
Disclaimer
This calculator is provided for informational and educational purposes only. While we strive for accuracy, we cannot guarantee the results will be error-free. All financial decisions should be made with the consultation of a qualified professional. Your use of this tool constitutes acceptance of these terms.