Acquisition
Break-even ROAS calculator
Enter your gross margin. The calculator gives the return on ad spend you need simply to break even, and what your margin leaves after ads at your current return.
Break-even ROAS
1.25x
- Profit per $1 of ad spend nowAt your current ROAS, after the cost of delivery
- $1.40
How to read the result
Below this line, each sale from ads costs more than it earns. Above it, the difference is what is left to cover salaries and everything else, so break-even is a floor and not a target.
The formula
AcquisitionBreak-even ROAS = 1 ÷ gross margin.
Frequently asked questions
Because more of each dollar of revenue is left to pay for the ad. At an 80% margin you keep 80 cents per dollar of revenue, so you need $1.25 of revenue per dollar of ad spend.
Use the same definition for ROAS and for the target. If you measure ROAS on the first payment, breaking even on that payment is a strict test that ignores renewals.
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