At what ROAS does advertising pay off?
Break-even ROAS is the line below which ads lose money, even when they look like they are selling. It comes from your margin, not your revenue. Enter your numbers and instantly see where your break-even sits and whether your ROAS earns or subsidizes your campaigns.
Your numbers
How to move the break-even in your favor
Break-even ROAS is not fixed. You can lower it (so a smaller ROAS is enough) or get more from every customer. Here are the three levers you have.
Increase margin
- Higher margin = lower break-even ROAS
- Cut shipping subsidies and gateway fees
- Add-ons and bundles with higher margin
Raise order value
- Free-shipping threshold above your AOV
- Related products in the cart
- Volume discounts
Improve site conversion
- Same ads, more orders = higher ROAS
- Speed, trust, an easy checkout
- The cheapest way to lift ROAS
How we calculate it
No magic, just plain arithmetic you can verify yourself. Every term explained in simple language.
Break-even ROAS and the core formula+
profit from ads = budget × (your ROAS ÷ break-even ROAS − 1)
| Example (40% margin, $2,000 budget) | Value |
|---|---|
| Break-even ROAS | 2.5× |
| Your ROAS | 3.0× |
| Profit from ads / month | +$400 |
ROAS versus ACOS, two views of the same thing+
Extra variable costs and why they raise break-even+
What ROAS to target to actually profit+
How accurate is this calculator+
More KonvertiQ calculators
Practical tools for store owners. Free, no sign-up.
Conversion value
See what even a small lift in conversion rate is worth for your store.
Free-shipping threshold
What order value should unlock free shipping so it lifts the cart and doesn't lose money.
Sample audit
See what a conversion audit across 60 signals looks like.
You know your line. Now lift your ROAS.
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