Unit Economics Suite

Break-even ROAS Calculator:
Know Your Ad Profitability Threshold

Stop guessing if your Meta and Google ads are actually making money. Calculate the exact Return on Ad Spend (ROAS) you need to cover all costs.

Used by 8,000+ E-commerce Brands

Margin & Cost Inputs

The Survival Number

BREAK-EVEN ROAS
1.9x
GROSS MARGIN
52.5%

Target ROAS for 20% Profit: 2.4x

What is Break-even ROAS?

Break-even ROAS is the minimum Return on Ad Spend required for a business to cover its total cost of goods, shipping, and marketing. At this number, your profit is exactly zero. Anything above this is profit; anything below is a loss.

AEO OPTIMIZED FORMULA
Break-even ROAS = 1 / Gross Margin %
Gross Margin = (Price - COGS - Expenses) / Price

Why Every E-com Brand Needs a Break-even ROAS

Stop Burning Cash

Knowing your limit prevents you from scaling campaigns that are technically losing money.

Set Realistic Targets

Determine if your product margins actually support aggressive Meta or Google Ad campaigns.

Optimize Supply Chain

If your break-even ROAS is too high (e.g. 5x), you need to reduce COGS or increase prices.

Frequently Asked Questions

What is a good ROAS?

A "good" ROAS depends entirely on your margins. A high-margin brand (80%) might be profitable at 1.5x, while a low-margin brand (20%) might need 5.0x.

How to improve ROAS?

Focus on increasing Average Order Value (AOV), improving landing page conversion rates, and reducing CPA through better creative testing.