Break-Even ROAS Calculator
Find the advertising return needed to cover ad spend from your contribution margin, with a revenue scenario. No sign-up or server processing required.
Find your break-even return
Contribution margin means sales revenue remaining after variable costs, before advertising spend. Include costs such as fulfilment and fees where relevant.
How to calculate break-even ROAS
Break-even ROAS = 1 ÷ contribution margin as a decimal. At a 40% contribution margin, break-even ROAS is 2.50×. Spending 400 currency units on advertising requires 1,000 in attributed revenue to generate 400 in contribution before advertising, exactly covering the ad spend.
Why simple revenue ROAS can be misleading
A campaign at 2× ROAS is not necessarily profitable: what matters is the variable costs associated with the sales. Contribution margin is a simplified planning input and should include costs such as product costs, transaction fees and fulfilment where relevant. Fixed overheads, attribution errors, refunds, taxes and future customer value can also affect overall business profit.
Frequently asked questions
Does break-even ROAS depend on ad platform?
No. The basic calculation depends on the economics of the products or services sold, although platform performance affects how achievable it is.
Does this account for agency fees or other fixed costs?
Only if those costs are reflected in the contribution margin or advertising spend inputs. For a full business break-even calculation, include all relevant costs.
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