Switching language clears current inputs and files.

Pricing & profit / FREE ONLINE TOOL

Break-even ROAS Calculator

ROAS measures revenue divided by ad spend. A campaign with a high ROAS can still lose money if most revenue goes to product costs and fees. Start with the contribution available to pay for advertising.

YOUR WORKBENCH

Find your advertising threshold.

● Runs locally

One sale, one currency. Use tax-exclusive amounts. Percentage fees apply to discounted revenue.

Ready when you are. Check the example values or enter your own.

⌁ No sign-up. No uploads. No analytics or advertising scripts. How local processing works

How to use Break-even ROAS Calculator

  1. Enter one representative sale using the same revenue basis that your advertising report uses.
  2. Include the costs of fulfilling that sale, before advertising.
  3. Read the break-even ROAS and maximum ad spend per sale. If contribution is not positive, adjust the economics before buying traffic.

Why the threshold is the inverse of contribution margin

Let R be net revenue after discounts and C be contribution before ads. At operating break-even in this model, ad spend equals C, so ROAS = R / C. Equivalently, divide 1 by the contribution margin as a decimal. The result displays four decimal places using round-half-up. Use some headroom: a rounded threshold is not a promise of profit.

When there is no positive-ad-spend solution

If contribution is zero, there is no money available for paid acquisition. If it is negative, the sale loses money before advertising. Neither case has a finite positive-ad-spend break-even ROAS. The tool explicitly reports that break-even is unavailable rather than displaying infinity or a fabricated target.

Attribution is not accounting

An advertising platform may include tax, shipping, repeat purchases or modeled revenue differently from your books. Align revenue definitions before comparing numbers. This per-sale model excludes overhead, agency retainers, returns, chargebacks, customer lifetime value and incrementality. Build return rates into a documented blended cost or analyze cohorts separately. A campaign’s reported ROAS alone does not establish causal profit.