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Break-Even ROAS Calculator
Find the exact ROAS you need to scale ads profitably.
Break-even ROAS calculator
Before you scale a Facebook, Instagram, or TikTok ad campaign, you need to know your break-even ROAS — the return on ad spend where the campaign pays for itself. Enter your selling price and costs and this calculator returns your break-even ROAS, the maximum you can pay to acquire a customer (break-even CPA), and your gross margin.
The math: gross profit = price − product cost − other per-order costs; break-even ROAS = price ÷ gross profit; max CPA = gross profit itself. Spend less than that per purchase and you profit. Then use the LTV calculator to justify spending even more, since repeat purchases raise the real ceiling on customer acquisition cost.
Frequently asked questions
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which your ad revenue exactly covers your product cost and ad cost — you make no profit and no loss. Above it you profit; below it you lose money.
How is break-even ROAS calculated?
Break-even ROAS = selling price ÷ gross profit per order, where gross profit = price − product cost − other per-order costs. If your gross margin is 50%, your break-even ROAS is 2.0.
What is a good ROAS?
Any ROAS above your break-even is profitable. Most brands aim comfortably above break-even (e.g. break-even 2.0, target 3.0+) to cover overheads and grow.