Home Back

Break Even ROAS Calculator

Break Even ROAS Formula:

\[ \text{Break Even ROAS} = \frac{1}{\text{Margin}} \]

decimal (e.g. 0.25 for 25%)

Unit Converter ▲

Unit Converter ▼

From: To:

1. What is Break Even ROAS?

Break Even ROAS (Return on Ad Spend) is the minimum ROAS needed to cover your costs and break even. It helps determine the effectiveness of your advertising campaigns.

2. How Does the Calculator Work?

The calculator uses the simple formula:

\[ \text{Break Even ROAS} = \frac{1}{\text{Margin}} \]

Where:

Explanation: If your margin is 25%, you need a ROAS of 4 (1/0.25) to break even on your ad spend.

3. Importance of Break Even ROAS

Details: Knowing your break-even ROAS helps set realistic advertising goals, evaluate campaign performance, and make data-driven budgeting decisions.

4. Using the Calculator

Tips: Enter your profit margin as a decimal between 0 and 1 (e.g., 0.25 for 25%). The calculator will show the minimum ROAS needed to break even.

5. Frequently Asked Questions (FAQ)

Q1: What's a good ROAS?
A: Anything above your break-even ROAS is profitable. Industry averages vary, but typically 4:1 is considered good.

Q2: How do I calculate my margin?
A: Margin = (Revenue - Cost) / Revenue. Include all costs associated with the product or service.

Q3: Should I aim for exactly break-even ROAS?
A: No, this is the minimum. Aim higher to account for other business costs and generate profit.

Q4: Does this work for service businesses?
A: Yes, as long as you can calculate your margin accurately, the formula applies to any business model.

Q5: How often should I check my ROAS?
A: Monitor regularly (weekly or monthly) and adjust campaigns as needed to maintain profitability.

Break Even ROAS Calculator© - All Rights Reserved 2025