Break-even ROAS Calculator
Estimate the break-even ROAS based on contribution margin assumptions.
Prefer an explanation? Read the guide.
Break-even ROAS: how to calculate it (and set a target ROAS)Target ROAS: how to set a realistic ROAS goal
Your product gross margin before marketing (COGS only).
%
Card/processing fees as % of revenue (optional).
%
As % of revenue (optional).
%
As % of revenue (optional).
%
Tip: you can type commas (e.g., 10,000).
Example
Using the default inputs, the result is:
1.75×
- Gross margin
- 60%
- Payment fees
- 3%
- Shipping & fulfillment
- 0%
- Returns & refunds
- 0%
Formula
Break-even ROAS = 1 ÷ (Contribution margin)
- This is a simplified contribution-margin model (not a full P&L).
- All inputs are expressed as a percent of revenue and are additive.
FAQ
Is break-even ROAS the same as target ROAS?
No. Break-even ROAS is the minimum ROAS to avoid losses on variable economics. Target ROAS should be higher to cover fixed costs and desired profit.
Should I include fixed costs in break-even ROAS?
Not in this simplified model. Fixed costs are better handled by setting a higher target ROAS or by modeling contribution profit needed to cover fixed costs.
How to interpret
How to use break-even ROAS
- Use contribution margin, not net margin.
- Add payment fees, shipping, and returns if they scale with revenue.
- Treat this as a floor; set a higher target ROAS for growth.