Breakeven ROAS Calculator: Know Your Minimum ROAS
Calculate your Breakeven ROAS instantly. Enter your profit margin to find the minimum ROAS needed to stay profitable on your ad campaigns.
Enter your product's profit margin percentage
Enter values to calculate
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What is Breakeven ROAS?
Breakeven ROAS is the minimum Return on Ad Spend you need to achieve to cover your costs and not lose money on advertising. Any ROAS above this number means profit.
Breakeven ROAS Formula
Breakeven ROAS = 1 ÷ (Profit Margin ÷ 100)Breakeven ROAS by Margin
Your breakeven ROAS depends directly on your margin:
- tools.calculators.breakevenRoas.benchmarks.highmargin
- tools.calculators.breakevenRoas.benchmarks.ecommerce
- tools.calculators.breakevenRoas.benchmarks.lowmargin
- tools.calculators.breakevenRoas.benchmarks.services
Frequently Asked Questions
What's the difference between breakeven ROAS and target ROAS?
Breakeven ROAS is the minimum to not lose money. Target ROAS should be higher to generate profit.
Why is knowing my breakeven ROAS important?
It's your advertising 'red line'. Below this, you lose money. It helps set smart bidding targets and evaluate campaigns.
How does margin affect breakeven ROAS?
Lower margins require higher ROAS. With 20% margin, you need 5:1 ROAS just to break even.
Should I factor in customer lifetime value?
Yes! If customers repurchase, you can accept lower initial ROAS. A $10 first-order loss is fine if CLV is $200.
What if my ROAS is below breakeven?
Optimize immediately: better targeting, improved creatives, higher prices, or pause unprofitable campaigns.
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