How to use this calculator
A $100 product with $50 in cost and fulfillment has a 50% gross margin, so break-even ROAS is 2.0 before target profit.
Advertising
Break-even ROAS Calculator
Find the minimum ROAS needed before a campaign becomes profitable under your assumptions.
Formula
Break-even ROAS = 1 / gross margin. Target ROAS adjusts for desired profit margin.
What the result means
This page explains the arithmetic behind the estimate so you can adjust assumptions before using the number in planning.
Read the guide
Understand break-even ROAS, gross margin, and the ad return needed before an ecommerce campaign stops losing money.
Break-even ROAS Explained: The Simple Math Behind Profitable AdsCommon questions
Why can high ROAS still lose money?
If gross margin is low, revenue can look high while profit remains thin.
Does this include refunds?
No. Add expected refund impact manually to costs if needed.
Is this platform-specific?
No. It uses general ecommerce unit economics.