Free tool · ROAS calculator
Find your break-even ROAS.
Enter your margin and ad spend to see the return you need just to cover costs — and the return you need to hit your profit goal.
Your numbers
Revenue needed just to cover your cost of goods: $12,500
Revenue needed to hit your profit goal: $18,750
For guidance only. Doesn't account for shipping, returns, taxes or fixed overheads.
How to read your numbers
Two numbers matter more than raw ROAS on its own.
Break-even ROAS
The minimum return that covers your cost of goods. Below this, every sale from ads is losing you money once margin is accounted for.
Target ROAS
Break-even plus the profit you actually want. This is the number to hold your campaigns to — not just "above 1x".
Gross margin
What's left of a sale after the cost of the product itself — before ad spend, shipping or other overheads.
Questions about ROAS
What is ROAS?
Return on ad spend — the revenue you get back for every dollar spent on ads. A 4x ROAS means $4 of revenue for every $1 spent.
What's the difference between break-even and target ROAS?
Break-even ROAS is the point where you've covered the cost of goods sold but made no profit. Target ROAS is break-even plus the profit margin you're actually aiming for.
What should I use as my gross margin?
Revenue minus the direct cost of the product, divided by revenue — before ad spend, shipping or other overheads. Your finance or ops numbers should already have this.
Is a high ROAS always a good sign?
Not on its own. A high ROAS on a low-margin product can still lose money, while a lower ROAS on a high-margin product can be very profitable. Margin is what turns ROAS into an actual profit number.
Does this apply outside ecommerce, like lead generation?
The same logic applies if you swap "revenue" for the value of a closed deal and factor in your close rate — the goal is still to know your break-even point before you scale spend.
Not hitting your target ROAS?
Book a free strategy call. We'll look at your actual account and tell you what we'd fix first.