Calculate your break-even ROAS
Estimate the minimum ROAS required to cover ad spend from gross margin and optional variable costs.
Simplified formula: 1 / contribution margin rate
How to use the Break-even ROAS Calculator
Estimate the minimum ROAS required to cover ad spend from gross margin and optional variable costs.
Formula and method
Simplified break-even ROAS = 1 / contribution margin rate.
Example
At a 40% contribution margin, simplified break-even ROAS is 2.50x.
Planning examples
These examples are mathematical scenarios designed to help with planning. They are not claims about typical market performance.
| Use | Recommendation |
|---|---|
| Planning | Use your own recent data whenever possible. |
| Comparisons | Keep the same definition and time period across comparisons. |
| Benchmarks | Treat public benchmarks as context rather than guarantees. |
How to interpret the result
Real profitability can also include shipping, returns, taxes, payroll, platform fees and overhead.
Frequently asked questions
Does this tool use an external API?
No. The calculation runs from the values you enter.
Is the result a guarantee?
No. It is a mathematical planning result based on your inputs.
Can I use my own real data?
Yes. Your own recent account or business data is usually the best input.
Can I compare different platforms?
Use caution because metric definitions and monetization models can differ by platform.