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// tools · ad break-even calculator

Break-even ROAS calculator

From your order value and margin: the ROAS you need, the most one sale can cost, and what you can pay per click.

Revenue minus product, fulfilment and payment costs. Digital products can come close to 100%.
From your ads account: conversion value ÷ cost
Break-even ROAS-

Max cost per sale (break-even)
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Max cost per click (break-even)
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Target ROAS
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Target cost per sale
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ROAS = revenue ÷ ad spend. Ignores repeat purchases and lifetime value, which can justify a lower ROAS.

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// how it works

How it's calculated

  • Break-even ROAS

    1 divided by your gross margin. At a 40% margin you need €2.50 of revenue for every €1 of ad spend just to cover costs.

  • Max cost per sale

    Average order value times margin: the most one sale can cost in ads before it loses money.

  • Target ROAS and max cost per click

    Add the profit you want per order to get a target ROAS, and your conversion rate to get the most you can pay per click.

// reference

Break-even ROAS by gross margin

The thinner your margin, the more every euro of ad spend has to bring back.

Gross marginBreak-even ROASROAS for 10% profitROAS for 20% profit
10%10.00xNot possibleNot possible
20%5.00x10.00xNot possible
30%3.33x5.00x10.00x
40%2.50x3.33x5.00x
50%2.00x2.50x3.33x
60%1.67x2.00x2.50x
70%1.43x1.67x2.00x
80%1.25x1.43x1.67x
90%1.11x1.25x1.43x

Profit is counted as a share of order value, after product, fulfilment and ad costs.

Common questions

What is a good ROAS?
There is no single good ROAS, whether on Google, Meta or Amazon. It depends on your margin: a ROAS that is profitable for a high-margin product can lose money on a low-margin one. Start from your break-even ROAS and add the profit you want per order, which is what the target ROAS shows.
How do you calculate break-even ROAS?
Divide 1 by your gross margin as a decimal. At a 25% margin, 1 ÷ 0.25 = 4, so every €1 of ad spend has to bring in €4 of sales before you make money.
What is break-even ROAS?
ROAS is revenue divided by ad spend. Break-even ROAS is the point where the gross profit from ad-driven sales exactly covers the ad spend. Below it, every sale from ads loses money.
Why aim above break-even?
Break-even pays for the ads and nothing else. Your target should also cover the profit you want per order, which is what the target ROAS shows.
What is the difference between ROAS and ROI?
ROAS compares revenue with ad spend only. ROI compares profit with total cost, so it includes product costs, fees and other spending. A campaign can show a healthy-looking ROAS and still lose money if margins are thin.
Why does my ad platform's ROAS differ from my shop's sales?
Ad platforms count conversions with their own attribution windows and models, and some include modelled or view-through conversions. Your shop counts actual orders. Expect a gap, and judge campaigns on trends and on what your shop records.
Can a ROAS below break-even still make sense?
Sometimes. If customers come back and buy again, the first order can be worth less than their lifetime value. That only works if you actually measure repeat purchases, so treat it as a deliberate decision, not a hope.
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