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Break-even ROAS calculator
How many times over must the ad pay back before I lose? Enter your price and cost and learn your own threshold.
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Calculate break-even ROAS
Enter the price of what you sell and what it costs you, in your currency. We tell you the minimum multiple your ad needs to bring back. The result updates as you type.
The amount the customer pays you
What that one sale costs you: product, shipping, packaging, commission
Break-even ROAS
2.5
Medium threshold
With a 40% margin, every 1 you spend needs to bring back at least 2.5 in revenue. Below that, the ad is losing money.
Your profit margin
40%
From a 400 sale, 160 stays with you
If you spend 1,000 on ads
2,500
Revenue needed to break even
Sales needed
7
To break even on 1,000 of spend
If you already know your marginoptional
If you do not want to deal with price and cost, enter your profit margin directly. When this box is filled we use this figure instead of the price and cost above.
The share of a 100 sale that stays with you. If a product you sell for 100 costs you 60, your margin is 40.
If you also want to make a profitoptional
Break-even ROAS is only the point where you do not lose. If you want something left in your pocket after the ad cost too, enter your target and we calculate the ROAS you need.
On revenue. If you enter 10, it means 10 should remain from a 100 sale after the ad cost is deducted.
Enter your target and we will show the ROAS you need to make a profit here.
You know your threshold now. Next, calculate your real ROAS and put the two numbers side by side. If your real ROAS is above the threshold the ad is making money; if it is below, it is burning money.
Threshold table by profit margin
The calculation is always the same: 100 divided by your profit margin. As the margin narrows, the return you need from the ad grows fast.
| Your margin | What stays from a 100 sale | Break-even ROAS | What it means |
|---|---|---|---|
| 15% | 15 | 6.67 | 6.67 in revenue needed for every 1 |
| 25% | 25 | 4.0 | 4 for every 1 |
| 40% | 40 | 2.5 | 2.5 for every 1 |
| 50% | 50 | 2.0 | 2 for every 1 |
| 70% | 70 | 1.43 | 1.43 for every 1 |
The table shows the formula itself, not an industry average. Enter your own margin in the box above to see your own threshold.
What does this mean?
What is break-even ROAS?
Break-even ROAS is the point where the ad neither makes nor loses money. It tells you how many times over the money you give to ads must come back as revenue for you to exactly break even. The formula is one line: 100 divided by your profit margin.
If your profit margin is 40%, your threshold is 2.5. That means every 1 you spend must bring back at least 2.5 in revenue. 2.5 is exactly the zero point: that day you neither earned nor lost. Above it is profit, below it is loss.
Why "what is a good ROAS" has no single answer
Sentences circulating online like "ROAS should be 3" are missing one thing: they do not know your margin. In a service with a 70% margin even a ROAS of 1.5 makes money. For a product with a 15% margin, a ROAS of 5 barely breaks even.
The right question is not "what is a good ROAS" but "what is my threshold". Once you have calculated your threshold, you read every number you see in the panel against it. The same 2.2 is pleasing for one business and an alarm for another.
Costs forgotten when calculating the margin
Most people look only at the purchase price of the product when calculating the margin. But on top of that sale there is shipping, packaging, marketplace or payment gateway commission and the cost of returned products. When these are left out the margin looks bigger than it is, the threshold comes out smaller than it is, and you think the ad is profitable.
The healthy way: find the amount that actually stays in your pocket from one sale and calculate with that. When entering unit cost in the box above, enter the total cost of that sale to you, not just the product cost. Fixed costs such as rent and staff do not enter this calculation; they exist whether or not you advertise. But if your return rate is high, you need to lower your margin accordingly.
What to do after finding your threshold
Your threshold lets you know when to stop the campaign. A new campaign can stay below the threshold in the first days, because Meta is still learning who is interested. But if after a few days you are still clearly below the threshold, continuing is not hope, it is an expense.
If your threshold came out very high, the problem may not be in the ad. In a business with a narrow margin what usually saves the ad is raising the average basket, bringing the second sale or reviewing the price. Ad budget does not fix a price structure that loses money on its own.
You know your threshold, so what is your real number?
This page gave you your target line. To see whether your ad is below or above that line, enter your spend and revenue in the ROAS calculator. Put the two numbers side by side and you see clearly whether the ad is making you money or only turning over revenue.
Frequently asked questions
How is break-even ROAS calculated?
Divide 100 by your profit margin. If your margin is 25%, 100 divided by 25 equals 4, so the ad needs to bring back at least 4 times its cost. If your margin is 50% your threshold is 2. Enter your price and cost in the box above and we do the calculation.
I don’t know my profit margin. What should I do?
Divide the amount that stays in your pocket from one sale by the sale price and multiply by 100. If 160 stays from a job you sell for 400, your margin is 40%. Remember to include items like shipping, packaging and commission in the cost.
What is the difference between break-even ROAS and ROAS?
ROAS measures what the ad actually brought: revenue divided by spend. Break-even ROAS is your target line, derived from your margin. Put the two side by side and you have the answer. If real ROAS is above the threshold there is profit; below it, loss.
I sell services, I have no product cost. How do I calculate?
For services, unit cost is the materials you spend to do the job and what you pay externally. If you do not count your own labor as a cost, your margin comes out high and your threshold low. The box where you can enter your margin directly is there for this.
I am below my threshold. Should I switch the ad off right away?
Do not rush in the first few days; Meta is still learning during that period. But if you are still below the threshold after data has accumulated, review the audience, the ad copy and your landing page first. Increasing the budget does not turn a campaign below the threshold profitable; it increases the loss.
Is this tool free? Do you store data?
Completely free and no sign-up. The calculation happens inside your browser; the numbers you enter are not sent to the server or stored.
You don’t have to check your threshold by hand every day
When you connect your ad account to Webdesiz, the panel tracks your spend and results. You get sentences instead of a table: what was spent in the last 7 days, what came in, what you need to touch today.
- The AI assistant prepares the ad copy, image and audience
- The ad is created paused; no spending starts until you approve
- Protection rules stop a campaign that exceeds its spend limit
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