Break-even ROAS Calculator
Find the minimum ROAS your ads need to break even — then the target ROAS to hit your desired net margin.
Your ad ROAS must stay at or above the break-even ROAS to avoid losing money.
For reference only — use your real costs and platform data.
What is break-even ROAS (BEROAS)?
Break-even ROAS (sometimes written BEROAS) is the return on ad spend at which your ad revenue exactly covers the cost of the goods, fees and shipping in each order — you make zero profit and zero loss. Spend more efficiently than this number and you profit; below it and every sale loses money.
The formula
Worked example
AOV $50, COGS $15, platform fees + shipping $10. Contribution = 50 − 15 − 10 = $25, so contribution margin = 0.50. Break-even ROAS = 1 ÷ 0.50 = 2.0. To keep a 15% net margin, target ROAS = 1 ÷ (0.50 − 0.15) ≈ 2.86.
Related free tools & guides
- Profit margin calculator
- CAC / LTV calculator
- Meta Ads for ecommerce hub
- Meta ads creative testing framework
Frequently asked questions
What is a good break-even ROAS?
There is no universal number — it is set entirely by your margins. A 50% contribution margin means a break-even ROAS of 2.0; a thin 25% margin needs 4.0. Always calculate it from your own costs.
Is break-even ROAS the same as target ROAS?
No. Break-even ROAS is where you make zero profit. Target ROAS is higher — it builds in the net margin you actually want to keep after ad spend.
What does BEROAS mean?
BEROAS is shorthand for break-even ROAS: the minimum return on ad spend at which a sale neither makes nor loses money.
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