Break-Even Return on Ad Spend (ROAS) Calculator
Use this calculator to determine your break-even return on ad spend (ROAS) based on your average Cost of Goods Sold (COGS) and average selling price.
Break-Even ROAS Calculator
Profit Margin: -
Break-even ROAS: -
What is Return on Ad Spend (ROAS)?
ROAS (Return on Ad Spend) is a marketing metric that tells you how well your advertising works. How? By showing how much revenue you make for each dollar you spend on ads.
To calculate ROAS, divide your total revenue earned from ads by your total ad costs. For example, if you earn $5000 in revenue from $1000 in ad spend, your ROAS would be 5 ($5000 / $1000 = 5).
What is Break-Even ROAS and how can you calculate it?
Break-even ROAS tells you the ROAS you need to cover the Cost of Goods Sold (COGS) for your product(s). If your actual ROAS is greater than your break-even ROAS, your ads are profitable. But, if your actual ROAS is less than your break-even ROAS, your ads are unprofitable.
To calculate break-even ROAS, you use this formula: 1 / Profit Margin. If your Profit Margin is 50% (0.50), then your break-even ROAS is (1 / 0.50) which is 2.00.
Knowledge is power. Once you know your break-even ROAS, you know what profitable performance looks like for your ads campaigns. You can use the calculator below to determine your break-even ROAS.
