Guides → Calculator
Free tool

Break-even ROAS calculator

Enter your gross margin and get the minimum return on ad spend you need just to avoid losing money, plus your break-even CPA and a target-profit ROAS. No sign-up, nothing stored.

%
€
%
Break-even ROAS
2.5x
Stay above this or you lose money on each sale.
Break-even CPA
–
Add an order value to see this.

How break-even ROAS works

ROAS (return on ad spend) is revenue divided by ad spend. Your break-even ROAS is the point where the gross profit on a sale exactly covers the cost of the ad that produced it, no profit, no loss. The maths is simple:

Break-even ROAS = 1 ÷ gross margin. A 40% margin needs a ROAS of 2.5; a 25% margin needs 4.0; a 60% margin needs only about 1.7. The thinner your margin, the harder your ads have to work just to stand still.

If you also entered an average order value, the tool shows your break-even CPA (cost per acquisition), which is simply your gross profit per order, the most you can pay for a sale before it costs you money. And if you entered a target profit, it shows the higher ROAS you would need to keep that slice of each sale after ad spend.

Break-even ROAS by margin

A quick reference if you just want the number for a typical margin:

Gross marginBreak-even ROASWhat it means
20%5.0xEvery €1 of ad spend must return €5 just to break even.
30%3.3xTight. Non-brand scaling needs care.
40%2.5xA common eCommerce midpoint.
50%2.0xComfortable room to scale.
60%1.7xHigh margin, aggressive growth is viable.
70%1.4xTypical of premium or digital goods.

Three things this number hides

Break-even ROAS is the right floor to set, but treat it as a floor, not a plan:

Want to go deeper? Read what counts as a good ROAS, or, if your numbers are sliding, the ROAS-dropping diagnostic checklist. For how targets translate into budget, see how much to spend on Google Ads.

Frequently asked

What is break-even ROAS?

Break-even ROAS is the return on ad spend at which the gross profit from a sale exactly equals its advertising cost, so you make no profit and no loss. It equals 1 divided by your gross margin: a 40% margin gives a break-even ROAS of 2.5.

How do I calculate break-even ROAS?

Divide 1 by your gross margin as a decimal. A 50% margin gives 1 ÷ 0.5 = 2.0; a 25% margin gives 1 ÷ 0.25 = 4.0. The lower your margin, the higher the ROAS you need just to avoid losing money.

What is a good ROAS for eCommerce?

Any figure comfortably above your break-even ROAS. There is no universal target: a 60%-margin brand can profit below a ROAS of 2, while a 20%-margin brand needs above 5 just to break even. Set targets against your own break-even, not an industry average.

Should I set my target ROAS at break-even?

No, break-even is the floor, not the goal. Set your target above it so each sale leaves a profit, and remember ROAS ignores shipping, returns, overheads and repeat purchases. Use break-even as the line you must stay above.

Keep reading
What is a good ROAS?Why is my ROAS dropping?How much to spend2026 EU fee benchmarkBook a free audit
Work with us

Know your number. Now hit it.

A free 30-minute audit of your actual Google Ads account, honest feedback on whether you are clearing your break-even ROAS, and where the waste is. No pitch until you ask for one.

Book a free audit
Book a free audit →