Break-Even ROAS Calculator
Break-even ROAS is one divided by the contribution-margin fraction. A 25% contribution margin implies 4× ROAS, or 400%, before fixed costs and a profit target.
Formula & method
Break-even ROAS = 1 ÷ (contribution margin ÷ 100).Worked example
| Input | Value |
|---|---|
| Contribution margin before ad spend | 25 % |
| Result | Value |
|---|---|
| Modeled break-even ROAS | 4 × |
| Modeled break-even ROAS | 400 % |
Compare scenarios
The first input changes while the other example inputs stay fixed. These are arithmetic scenarios, not forecasts.
| Compare scenarios | Contribution margin before ad spend % | Modeled break-even ROAS | Modeled break-even ROAS |
|---|---|---|---|
| −20% | 20 | 5 × | 500 % |
| Example | 25 | 4 × | 400 % |
| +20% | 30 | 3.333333333 × | 333.3333333 % |
Assumptions & limits
Use the share of revenue remaining after relevant variable costs and before advertising. A gross margin that omits payment or fulfilment fees can overstate what is available to buy traffic. Fixed costs require an additional allowance.
Displayed results are rounded. Calculations use unrounded JavaScript numbers; small floating-point differences are possible.
Use the same currency and reporting period for every monetary input. This tool does not fetch prices, exchange rates or account data.
Works in your browser
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Sources & definitions
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Continue with a related task
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ROAS is attributed revenue divided by ad spend. Revenue of 4,500 from spend of 1,500 gives 3× ROAS, equivalent to 300%.
Gross Margin Calculator
Gross margin is revenue minus included cost of goods, divided by revenue, multiplied by 100. Revenue of 1,000 and cost of 650 gives a gross profit of 350 and margin of 35%.
Break-Even CPC Calculator
Break-even CPC equals conversion probability multiplied by contribution per conversion. At a 2.5% conversion rate and 40 contribution per conversion, the modeled ceiling is 1 per click.
CPM Calculator
CPM equals advertising spend divided by impressions, multiplied by 1,000. A spend of 1,200 for 400,000 impressions gives a CPM of 3 in the same currency.