Minimum ROAS needed to not lose money. The Break-Even ROAS Calculator takes gross margin, other variable costs as a share of revenue (fulfilment, fees) and returns break-even roas plus as a percentage, break-even acos. Results update as you type, and the formula is shown under the result so you can repeat it in your own spreadsheet.
Marketing metrics are most useful as trends and comparisons between channels. Measure every campaign the same way, over the same period, and judge it against your gross margin rather than against revenue alone. Use the worked example below to check the maths against your own figures.
How the Break-Even ROAS Calculator works
The return on ad spend at which a campaign exactly covers its cost. At a 40% margin with 5% other costs you need 2.86x; anything below loses money.
Worked example
With the example values (gross margin of 40%, other variable costs as a share of revenue (fulfilment, fees) of 5%), the break-even roas is 2.86x; as a percentage 285.71%, break-even acos 35%. Change any figure above and the result updates immediately; use Copy results to paste the summary into a note or email.
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Frequently Asked Questions
How is break-even roas calculated?
break-even ROAS = 1 ÷ (gross margin − other variable costs).
Which figures do I need?
Gross margin, other variable costs as a share of revenue (fulfilment, fees). Take them from the same period and the same set of accounts or reports so the ratio is consistent, and check the example values as a guide to the units expected.
How often should I track this metric?
Weekly for live campaigns, monthly for channel comparisons, and always over the same period for spend and results so the figures line up.
