Break-Even ROAS Calculator
Find the advertising return required to cover variable costs and ad spend.
Example result
- Maximum ad share of revenue
- 40%
The input margin must already deduct variable product, shipping and payment costs. Fixed overhead and a profit target are excluded.
How to calculate it
The input margin must already deduct variable product, shipping and payment costs. Fixed overhead and a profit target are excluded.
Worked example
This is an illustrative scenario, not a market benchmark. Select “Reset to example” to reproduce it in the calculator.
- Contribution margin before advertising
- 40 %
Break-even ROAS: 2.5×
Break-Even ROAS FAQ
Should I use gross margin or contribution margin?
Use the margin left after all variable costs except the advertising being tested. Omitting fulfillment or payment costs understates the required ROAS.
What does this calculation leave out?
The input margin must already deduct variable product, shipping and payment costs. Fixed overhead and a profit target are excluded.
Are my inputs saved or sent to a server?
Calculations run in your browser. We do not send your inputs or results to our server or analytics. A comparison stays in this tab until it is refreshed. A CSV is saved only when you choose to download it. See our privacy policy for ordinary hosting and optional analytics data.
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Break-Even ROAS Formula: Find Your Advertising Threshold →CAC Payback Period: Calculate Months to Recover Acquisition Cost →