Louie Sinclair Digital

Tools / Break-even ROAS

Break-even ROAS calculator

Return on ad spend (ROAS) is sales divided by ad spend. Below your break-even ROAS, every sale from ads loses money once product costs are paid.

Break-even ROAS
Target ROAS
Break-even cost per order
Target cost per order
Sales needed from the budgetAt target ROAS
Orders neededAt target ROAS
024681010%20%30%40%50%60%70%80% Your margin: 2.50 Gross margin Break-even ROAS
Break-even ROAS by gross margin. The dot follows the margin you enter above.

How it works

Break-even ROAS is 1 divided by your gross margin. At a 40% margin, every 1.00 of ad spend must bring in 2.50 of sales just to cover the ad cost.

Target ROAS is 1 divided by your margin minus the profit you want to keep. At a 40% margin and a 10% profit target, that is 1 ÷ 0.30 = 3.33.

Use the target ROAS as the figure you set in Google Ads or Meta. If your account cannot reach it, the problem is usually margin, conversion tracking or campaign structure. See how we approach paid media.