Break Even ROAS Calculator

Maximize Profitability with Smarter Ad Spend

Discover the minimum ROAS you need to break even on ads across Facebook, Google, TikTok, and more.
No account required. Zero cost. Instant clarity.

Selling Price

Product Cost

Break Even ROAS

What Is Break-Even ROAS?

When running ads, you’ll often see a “ROAS” number from platforms like Meta or Google Ads. But a good ROAS doesn’t always mean you’re making money.

Break-Even ROAS (BEROAS) is the minimum Return on Ad Spend where your sales just cover your product cost and ad spend—nothing more.

If your campaign is above BEROAS → you’re profitable.
If it’s equal → you’re breaking even.
If it’s below → you’re losing money.

How the Calculator Works

Enter Your Numbers

Selling Price: How much you sell the product for.
Product Cost (COGS): All costs to get that product into the customer’s hands (manufacturing, shipping, packaging, platform fees, etc.).

2.We Calculate the Formula
Break-Even ROAS = Sale Price ÷ (Sale Price – COGS)

3. Instant Results
See the exact ROAS threshold you need to hit break-even.

Example: Simple Case

Sale Price: $40
COGS: $20

Formula: $40 ÷ ($40 – $20) = $40 ÷ $20 = 2.0

This means you need a ROAS of 2.0 (or $2 in sales for every $1 in ad spend) just to break even.

At ROAS 2.5 → you’re making profit.
At ROAS 2.0 → you’re neutral.
At ROAS 1.5 → you’re losing money.

Example: Including Extra Costs

Let’s say you want to be more realistic and include fees + shipping.

Sale Price: $120
Product Cost: $50
Shipping & Packaging:
$10- Platform Fees: $5

Total COGS = $65

Formula: $120 ÷ ($120 – $65) = $120 ÷ $55 ≈ 2.18

Your break-even ROAS is 2.18. Anything above that is profit.

Why Break-Even ROAS Matters

See the Truth Behind ROAS: A campaign with ROAS 3 might look amazing—but if your costs are high, you could still be losing money.
Optimize Smarter: Know which campaigns to scale, pause, or test further.
Budget With Confidence: Use break-even as your “line in the sand” when evaluating ad spend efficiency.
Plan for Growth: Sometimes it’s smart to run ads near or below break-even if your Customer Lifetime Value (CLV) is strong—like when customers buy again or subscribe.

Quick Tip

Always include all relevant costs (COGS + shipping + platform fees + packaging). Otherwise, your BEROAS will look better than it really is.

Summary Table (for quick reference)

Selling Price	Total COGS	Gross Profit	Break-Even ROAS
$40	$20	$20	2.0
$100	$60	$40	2.5
$120	$65	$55	2.18

Ready to optimize your ad spend smarter?
Enter your numbers into the Break-Even ROAS Calculator now and see exactly where your campaigns stand.