Break Even ROAS Calculator
Work out the minimum ROAS your margin requires before an ad campaign makes any profit.
Break even ROAS
What it measures
Break even ROAS is 1 divided by gross margin. It is the ROAS at which a campaign stops losing money and starts making it. Percentages go in as whole numbers, so 2.5 means 2.5 percent.
Why it matters
Most ROAS targets are made up. This one is arithmetic. Knowing yours turns every campaign report into a clear profit or loss statement.
A worked example
At a 40 percent margin the break even ROAS is 2.5x. A campaign proudly reporting 2x is losing money on every sale.
How to read and improve it
You lower break even ROAS by improving margin: pricing, bundling and cost of delivery, not media tweaks.
Frequently asked questions
Why does margin set the bar?
Because ad revenue is not profit. At 40 percent margin, a sale of 100 brings 40 to cover its share of ad cost.
Should I target break even?
No, target above it. Break even pays for the ads and nothing else.
More in Paid media: ROAS Calculator · PPC ROI Calculator · Advertising ROI Calculator
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