Enter your profit margin
One field is enough. The break-even figure appears as soon as you type.
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Break-even ROAS calculator
This break-even ROAS calculator needs one number, your profit margin. It returns the lowest return on ad spend at which a campaign pays for itself, so you know which campaigns to keep.
Your break-even point
Enter your profit margin to see your break-even ROAS.
Break-even ROAS
- As a percentage
- Share of each sale you can spend on ads
- Target ROAS
- Revenue your ads must produce
This tool runs in your browser. Nothing you enter is sent or stored.
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which the profit from your sales equals the cost of the ads that produced them. Below that figure the campaign loses money, even when the revenue looks healthy.
A contractor who keeps 40% of each job has a break even ROAS of 2.5x. Spending 1,000 on ads must bring in 2,500 of work, because 40% of 2,500 is the 1,000 that was spent.
How do you calculate break-even ROAS?
You calculate break-even ROAS by dividing 1 by your profit margin written as a decimal. A margin of 40% is 0.40, and 1 divided by 0.40 is 2.5.
| Profit margin | Break-even ROAS |
|---|---|
| 20% | 5.00x |
| 30% | 3.33x |
| 40% | 2.50x |
| 50% | 2.00x |
| 60% | 1.67x |
The margin to use is the one before advertising. Take the price of a sale, subtract materials, labor, commissions and delivery, and divide what is left by the price.
How does a target ROAS differ from break-even?
A target ROAS is the return that leaves you the profit you want, where break-even leaves none. It is 1 divided by the margin that remains after your profit is set aside.
With a 40% margin and a wish to keep 15% of revenue, 25% of each sale is available for ads and the target is 4x. Add a profit target to use this page as a target ROAS calculator, and enter it as the target in Google Ads or Meta.
What can you do when a campaign is below break-even?
You can raise the revenue the campaign produces from the same spend, which is usually quicker than cutting the cost of clicks. More of your clicks need to become leads, and more of those leads need to become sales.
Growform works on both. Its multi-step forms bring more paid visitors to the end of the form, and its qualifying questions give your sales team the job, budget and timing before the first call. Measure the result afterwards with the ROAS calculator.
How to use this breakeven ROAS calculator
Add a profit target
Choose “A profit target” to set aside the share of revenue you want to keep. The calculator returns a target ROAS above break-even.
Add your ad spend
With a budget entered, you see the revenue the ads must produce in your own currency.
How Growform moves a campaign above break-even
The break-even point is fixed by your margin. The return is decided by what happens after the click.
- The same ad spend produces more leads.
Short steps and picture buttons make the form easy to begin on a phone.
- Leads you cannot serve are screened out.
Disqualification rules mark poor fits from their answers, before anyone spends time on them.
- Ad platforms learn from qualified leads.
Conversions can fire for qualified leads only, so bidding follows the leads that produce revenue.
Frequently asked questions
Which margin should I use, gross or net?
Use the margin on a sale before advertising costs. It should include everything it takes to deliver the work and leave out the ads themselves.
Is a ROAS of 4x always profitable?
No. A 4x return is profitable for a business with a margin above 25% and unprofitable below it.
Does break-even ROAS change with repeat customers?
Yes. When customers buy again, the first sale can run at break-even or below, because later purchases carry no ad cost. Base the margin on the value of the customer over the period you are willing to wait.
Should agency fees be included?
Add the fee to your ad spend when you judge the whole campaign. The break-even ratio stays the same, and the revenue needed rises with the larger spend.
Why this tool is different
This page was designed around one number, since break-even ROAS depends on nothing but your margin.
- The split bar shows where each sale goes, with the cost of delivery, the share available for ads and the profit you keep drawn to scale.
- A profit target turns the break-even figure into a target ROAS you can enter in Google Ads or Meta.
- The reference table covers margins from 20% to 60%, which is the range most service businesses fall in.
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