What Is BEROAS? Formula, Benchmarks & How to Calculate (2026)
BEROAS (break-even ROAS) is the minimum return on ad spend at which your ad revenue exactly covers each order's costs — you make zero profit and zero loss. The formula is: break-even ROAS = 1 divided by your contribution margin. The thinner your margin, the higher the ROAS you need. Beat this number and you profit; fall short and every sale loses money.
To run the numbers, use our break-even ROAS calculator; to nail down your cost structure first, use the profit calculator.
The formula
First find your contribution margin, then invert it:
Contribution margin = (AOV − COGS − fees − shipping) ÷ AOV
Break-even ROAS = 1 ÷ contribution margin
If you also want to keep some net profit on top of covering costs, use target ROAS = 1 ÷ (contribution margin − desired net margin).
Worked example
AOV $50, COGS $15, platform fees + shipping $10. Contribution = 50 − 15 − 10 = $25, so contribution margin = 25 ÷ 50 = 0.50. Break-even ROAS = 1 ÷ 0.50 = 2.0 — meaning every $1 of ad spend must return at least $2 in revenue to avoid a loss. To also keep a 15% net margin, target ROAS = 1 ÷ (0.50 − 0.15) ≈ 2.86.
Margin-to-break-even-ROAS benchmarks
| Contribution margin | Break-even ROAS | Read |
|---|---|---|
| 60% | 1.67 | High margin, lots of ad headroom |
| 50% | 2.00 | Common healthy range |
| 40% | 2.50 | Needs steady conversion |
| 30% | 3.33 | Thin, demanding on ads |
| 25% | 4.00 | Very thin, little room for error |
There is no universal "good BEROAS": it's set entirely by your margins, so always calculate it from your own real costs.
Frequently asked questions
What is a good BEROAS? There's no universal number. It's driven by your contribution margin: a 50% margin gives a break-even ROAS of 2.0, a 25% margin needs 4.0. Lower is "better" because it means a fatter margin.
What's the difference between BEROAS and target ROAS? BEROAS is the zero-profit threshold; target ROAS is higher because it builds in the net margin you actually want to keep. Manage day-to-day to target ROAS — BEROAS is just your floor.
Is BEROAS the same as ROAS? No. ROAS is the revenue your ads actually return; BEROAS is the level that ROAS must reach to break even. Comparing your real ROAS against BEROAS tells you whether a campaign is actually profitable.
How does BEROAS relate to ACOS? ACOS is the inverse of ROAS (as a percentage). Your break-even ACOS equals your contribution margin — e.g. a 50% margin means a break-even ACOS of 50%, which is the same as a BEROAS of 2.0.
To wire this break-even floor into a full cost-and-profit model, see the TikTok Shop fees and profit-margin breakdown.
Leads EshopPick's product-research and data desk. Focuses on TikTok Shop US sourcing frameworks, fee-and-profit math, and platform comparisons. Every take is grounded in our weekly real-sales data and Opportunity Score — practical calls, not chart-chasing.