# Break-Even ROAS Calculator

URL: https://speedycalculator.com/calculators/finance/break-even-roas/
Last updated: 2026-10-25

> The break-even ROAS calculator finds the minimum return on ad spend your campaigns need to avoid losing money, based on your profit margin. It also shows actual ROAS and profit from your ad spend and revenue.

## Inputs

- Profit margin before ads (%)
- Ad spend
- Revenue from ads

## Results

- Break-even ROAS
- Actual ROAS
- Profit after ads

## Formula

```
Break-even ROAS = 1 ÷ profit margin
ROAS = revenue ÷ ad spend
```

## Explanation

Online stores often judge ads by ROAS, but a ROAS that looks high can still lose money if margins are thin.

### How to use the Break-Even ROAS Calculator

- **Profit margin before ads**
- **Ad spend**
- **Revenue from ads**

Results update as you type, and every field accepts the units shown in its menu.

### How it works

If each sale keeps a given margin, ad revenue must be at least ad spend divided by that margin to cover the ads.

### Inputs explained

FieldWhat to enterProfit margin before adsIn %Ad spendAmount in your currencyRevenue from adsAmount in your currency

### What each result means

- **Break-even ROAS** = 100 ÷ [Profit margin before ads]
- **Actual ROAS** = [Revenue from ads] ÷ [Ad spend]
- **Profit after ads** = [Revenue from ads]×[Profit margin before ads]÷100 - [Ad spend]

### Example values

How the main result changes when **Profit margin before ads** changes and everything else stays at the example values above:

Profit margin before ads (%)Actual ROAS (×)203.2303.2403.2503.2603.2803.2

## Worked example

Inputs — Profit margin before ads: 40 %; Ad spend: $1,000; Revenue from ads: $3,200.

Results — Break-even ROAS = 2.5 ×; **Actual ROAS = 3.2 ×**; Profit after ads = $280.00.

## Key terms

- **ROAS**: Return on ad spend, revenue divided by ad cost.

## FAQ

**What is a good ROAS?**
Anything above your break-even ROAS is profitable on a first-order basis.

**Does this include customer lifetime value?**
No; repeat purchases can justify a lower first-order ROAS.

**What formula does the Break-Even ROAS Calculator use?**
Break-even ROAS = 1 ÷ profit margin.