ROAS and break-even calculator
Enter your ad spend, revenue and gross margin to see whether the campaign is actually profitable. ROAS measures revenue, not profit — the real threshold depends on your margin.
Your ROAS
3.60x
Break-even ROAS
2.22x
You are above the profit threshold
Gross profit
€81,000
Net contribution after ads
€31,000
POAS (profit-based ROAS)
1.62x
Gross profit divided by ad spend. Below 1.0 means a loss.
Revenue needed to break even
€111,111
The minimum revenue required for this spend to pay for itself.
If your numbers sit below the threshold, the problem is usually the funnel rather than the budget. Let's look at it together in a free call.
Book a free callFrequently asked about ROAS
What is the difference between ROAS and POAS?+
ROAS divides revenue by ad spend and ignores product cost. POAS divides gross profit by ad spend. On low-margin products a high ROAS can still mean a loss; POAS removes that illusion.
How is break-even ROAS calculated?+
Break-even ROAS = 1 ÷ gross margin. With a 40% margin that is 1 ÷ 0.40 = 2.5x. Any campaign below 2.5x takes money out of the business even when the report looks positive.
What counts as a good ROAS?+
There is no single number — the threshold depends entirely on your margin. At a 20% margin even 5x is break-even; at 60% margin 1.7x is already profitable. Calculate your own threshold instead of chasing industry averages.
Where do returns and shipping costs belong?+
Deduct them when calculating gross margin. In categories with high return rates, such as fashion, using the post-returns margin is the only way to see the real threshold.
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