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Ad Break-Even ROAS Calculator

Find the return on ad spend you must hit just to break even, from your product margin — plus the matching break-even ACoS and profit-target ROAS.

Selling price

Product cost (COGS)

Other variable cost per unit

Target profit margin (optional)

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How it works

Contribution = price − COGS − other costs · Break-even ROAS = price ÷ contribution · Break-even ACoS = contribution ÷ price × 100 · Target ROAS = 1 ÷ (margin − target)

Break-even ROAS is the point where the profit an ad generates exactly equals what you spent on it — it is simply the reciprocal of your margin as a fraction of price. A product with a 50% contribution margin breaks even at a 2× ROAS; a thin 20% margin needs a 5× ROAS just to cover costs. Knowing this number turns campaign management into a clear pass/fail test: below break-even ROAS an ad is losing money no matter how many sales it drives.

Worked example

A $50 product costing $20 with $5 of other variable costs contributes $25, a 50% margin. Break-even ROAS is 50 ÷ 25 = 2.0× (break-even ACoS 50%), and you can pay up to $25 per sale. To keep a 10% net margin you need a ROAS of 1 ÷ (0.50 − 0.10) = 2.5×.

Frequently asked questions

What is the difference between ROAS and ACoS?

They are reciprocals. ROAS is revenue divided by ad spend (a 2× ROAS means $2 back per $1 spent); ACoS is ad spend divided by revenue (50% in that case). Break-even ROAS = 1 ÷ margin fraction, and break-even ACoS = margin fraction — the same threshold viewed two ways.

Why does a lower margin need a higher break-even ROAS?

The less profit each sale carries, the more sales revenue an ad must generate to recoup its cost. At a 50% margin two dollars of sales cover a dollar of ad spend (2× ROAS); at a 20% margin it takes five dollars of sales (5× ROAS) to cover the same dollar.

How is the target-margin ROAS calculated?

To keep a net margin after ads, you need ROAS = 1 ÷ (margin fraction − target fraction). If the target margin approaches your gross margin the required ROAS climbs steeply, and a target at or above the margin is unreachable — advertising cannot leave more profit than the product carries.

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Educational estimate, not financial advice. Fee rates and duties change — confirm current figures with the marketplace, carrier or customs authority.