ROAS & Break-even ROAS Calculator
Find your break-even ROAS and true profit after ad spend.
Total amount spent on the campaign.
Sales attributed to this ad spend.
Contribution margin — the % of revenue left after product cost.
Optional — number of orders, to get CAC.
How the ROAS calculator works
Enter your ad spend, the revenue those ads generated and your gross (contribution) margin. The tool returns your ROAS (revenue ÷ spend), your break-even ROAS (1 ÷ margin) — the return at which ads exactly pay for themselves — plus ACOS and your net profit after ad spend. Add your order count to also get CAC, the cost to acquire each customer.
A ROAS above break-even means the campaign is profitable; below it, you are losing money on every sale. Because break-even depends entirely on margin, keep your numbers honest with the profit margin calculator, and check how a promotion changes the maths with the discount calculator.
Frequently asked questions
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which your ad revenue exactly covers product cost plus the ad spend — the point of zero profit. It equals 1 ÷ your contribution margin. Any ROAS above it is profit; below it, you lose money. The calculator finds this number for you.
How is ROAS different from profit?
ROAS is revenue ÷ ad spend and ignores your product costs. A 3× ROAS can still be a loss if your margins are thin. This tool combines ROAS with your gross margin to show real net profit, not just a vanity multiple.
What is a good ROAS for a D2C store in India?
It depends entirely on margin. A store with a 60% margin can be profitable at a 2× ROAS, while a 25%-margin store may need 4× or more. Always compare your actual ROAS against the break-even ROAS this calculator gives you.
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