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Free Break-Even ROAS Calculator

Turn your contribution margin into the minimum ROAS and revenue your ads must hit to break even.

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How to use this tool

A 3× ROAS can be a great result for one store and a loss for another, because it all depends on margin. This calculator converts your contribution margin into the break-even ROAS and shows the revenue a given ad spend needs to generate. It’s for ecommerce owners, media buyers and anyone setting a ROAS target for Meta, Google or TikTok ads.

  1. 01

    Enter contribution margin

    In Contribution margin (%), type the share of revenue left after product, shipping, payment and other variable costs, before ad spend. For 40%, type 40.

  2. 02

    Enter ad spend

    Add your planned or actual budget in Ad spend. It sets the Required revenue figure and doesn’t change the break-even ROAS itself.

  3. 03

    Calculate and set targets

    Press Calculate to see Break-even ROAS and Required revenue, with the equation 1 ÷ (40 ÷ 100). Copy both, then add a profit buffer for your real target.

Break-even ROAS formula with a worked example

Break-even ROAS = 1 ÷ contribution margin. Required revenue = ad spend × break-even ROAS. At a 40% margin, 1 ÷ 0.40 = 2.5, so every $1 of ads must bring back $2.50 in revenue. On $500 of spend that’s $1,250. Check: $1,250 × 40% leaves $500, exactly the ad cost, with nothing left over.

How to work out your contribution margin

Start with the price a customer pays, then subtract every cost that comes with each order: product or production cost, shipping and packaging, payment fees, platform fees and expected returns. Divide what’s left by the price. A $100 order with $60 of those costs has a 40% contribution margin. Leave fixed costs such as rent and salaries out of this number.

What is a good ROAS?

A good ROAS sits comfortably above your break-even point. Lower margins push the threshold up fast: a 20% margin needs 5×, while a 50% margin needs only 2×. Many brands add a buffer on top of break-even to cover fixed costs and profit, and accept a lower ROAS on first orders when customers tend to buy again.

How to lower your break-even ROAS

• Raise average order value with bundles or free-shipping thresholds. • Negotiate lower product, packaging or shipping costs. • Reduce returns with clearer sizing and product details. • Test modest price increases on products with strong demand. Every gain in margin lowers the ROAS your ads need to reach.

Frequently asked questions

What is break-even ROAS?

Break-even ROAS is the return on ad spend at which ad-driven revenue exactly covers the variable costs of the orders and the ads themselves. Below it, each sale loses money after ads; above it, you keep a contribution toward fixed costs and profit. It’s often shortened to BEROAS.

How do you calculate break-even ROAS?

1. Work out your contribution margin before ads as a percentage. 2. Convert it to a decimal, so 40% becomes 0.40. 3. Divide 1 by that decimal. At 40%, 1 ÷ 0.40 = 2.5× break-even ROAS.

What is ROAS?

ROAS, or return on ad spend, is revenue from ads divided by what you spent on them. Spending $500 and earning $1,500 in attributed revenue is a 3× ROAS. Break-even ROAS tells you whether that number is actually profitable.

Should I use gross margin or contribution margin?

Contribution margin gives the more accurate answer, because it also subtracts shipping, payment fees and returns, not only product cost. Using gross margin alone makes the break-even ROAS look lower than it really is.

What is the difference between ROAS and ROI?

ROAS compares revenue with ad spend only. ROI compares profit with the total investment, after all costs. A campaign can show a healthy-looking ROAS and still have a negative ROI when margins are thin.

Does break-even ROAS include fixed costs?

No. It covers the variable cost of each order and the ad spend, not rent, salaries or software. Set your target ROAS above break-even so the remaining contribution can pay for fixed costs and leave a profit.

Why does the calculator say my input is invalid?

Contribution margin must be greater than 0 and no more than 100, and ad spend can’t be negative. If your margin is zero or negative, no ROAS can break even until prices or costs change.

How do I set a target ROAS from break-even?

Decide what profit share you want to keep from each sale, subtract it from your contribution margin, then divide 1 by the result. With a 40% margin and a 10-point profit goal, 1 ÷ 0.30 ≈ 3.33× is your target. Enter 30 in the margin field to get it here.

Is my margin data stored or shared?

No. Everything is calculated in your browser, and the margin and spend you enter aren’t sent to SocQ or saved after you close the page.

Is the break-even ROAS calculator free?

Yes. It’s free with no signup or account, and you can test as many margin and spend scenarios as you like, then copy the results.

For developers

Add public social context to ROAS reviews

SocQ APIs collect public posts, profiles and comments from Instagram, TikTok, YouTube and LinkedIn, so you can review the content and audience feedback around campaigns that beat or missed their break-even ROAS. Revenue and spend still come from your store and ad platform.

Explore the API

instagram/posts

posts0.34 credits / result

instagram/profiles

profiles0.6 credits / result

instagram/reels

posts0.52 credits / result

instagram/comments

comments0.3 credits / result

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