Break-even ROAS Calculator
Find the minimum ROAS you need to avoid losing money. Enter your cost and price, get instant results.
Calculate Your Break-even ROAS
Input mode
Your Break-even ROAS
1.43 ×
At a break-even ROAS of 1.43×, you're only covering your product and operating costs. Any ROAS above this means profit; below this means you are losing money.
Profit Margin
70.0%
Based on your inputs
Suggested Target ROAS
1.71 ×
As a simple rule of thumb, aiming for around 20% above break-even is a reasonable starting Target ROAS.
Difficulty level
High-margin product with plenty of room for advertising.
Break-even ROAS Formula
Break-even ROAS = 1 ÷ Profit MarginBreak-even ROAS is the minimum ROAS you need to cover your costs without losing money. It is based on your profit margin. Higher margins mean lower break-even ROAS, making it easier to run profitable ads.
Example: High-margin product:
- • Product cost: $30
- • Selling price: $100
- • Profit margin: 70%
- • Break-even ROAS ≈ 1.43×
Example: Low-margin product:
- • Product cost: $75
- • Selling price: $100
- • Profit margin: 25%
- • Break-even ROAS = 4.0×
With only 25% margin, you need 4× return just to break even — much harder to achieve.
Difficulty levels by Break-even ROAS
How to Use
- Select your input mode: Use 'Cost + Selling Price' if you know your product economics, or 'Profit Margin' if you already have that number.
- Enter your values: Include all costs (manufacturing, shipping, fees). The calculator updates instantly as you type.
- Check your results: See your break-even ROAS, current margin, and a suggested target ROAS (20% above break-even).
- Review the difficulty level: Green means easy to profit, yellow means moderate, red means challenging. Use this to decide if your margins support paid advertising.
Frequently Asked Questions
What is Break-even ROAS?
Break-even ROAS is the minimum ROAS you need so that your revenue from ads exactly covers your product and operating costs. At this point you are not making profit yet, but you are not losing money either.
How is Break-even ROAS different from normal ROAS?
Normal ROAS tells you how much revenue you earn for every dollar spent on ads. Break-even ROAS focuses on your profit margin and shows the minimum ROAS you need before you start losing money.
How should I use the suggested Target ROAS?
The suggested Target ROAS is simply break-even ROAS × 1.2. It gives you a reasonable starting point that includes a small profit margin. You can adjust it up or down based on your risk tolerance and business goals.
What if my Break-even ROAS is very high?
A very high break-even ROAS usually means your profit margin is low. Consider raising prices, negotiating better product costs, or improving average order value before scaling ad spend.
Should I include shipping costs in my product cost?
Yes! Your product cost should include everything: manufacturing, packaging, shipping to customer, payment processor fees (typically 2.5-3%), and any taxes you absorb. Missing these costs will make your break-even ROAS appear lower than it actually is.
What's the difference between Markup and Margin?
Markup is calculated on cost (e.g., $30 cost + 100% markup = $60 price). Margin is calculated on price (e.g., $60 price - $30 cost = 50% margin). Break-even ROAS always uses margin, not markup. A common mistake is confusing the two.
Related tools and guides
Calculate your overall ROAS from ad spend and revenue.
Learn the ROAS formula with step-by-step examples.
Understand the math behind Break-even ROAS and profit margins.
Practical guide to using Break-even ROAS in real campaigns.