Free tool · Advertising metrics
Break-even ROAS calculator
Every campaign has a floor: the ROAS below which it loses money. Enter your gross margin to find yours — the single number every ROAS target should sit above.
Revenue minus cost of goods sold, as a percent of revenue. Exclude ad spend — that’s what we’re solving for.
Enter your gross margin to see your break-even ROAS.
Estimate only. This covers gross profit, not net profit — rent, salaries, and other fixed costs sit outside this calculation.
What this means
Break-even ROAS is 1 divided by your gross margin. At a 60% gross margin, 1 ÷ 0.60 = 1.67×: every ad dollar must return $1.67 in revenue to cover the cost of what you sold. Campaigns below this line are subsidized by the rest of your business — whether you realize it or not.
This is the honest starting point for every budget and bidding conversation. Once the floor is known, Adsevon's job is to show which campaigns sit below it, why, and what to change — with the exact numbers from your data attached.
Questions about this tool
How do I calculate break-even ROAS?
Divide 1 by your gross margin as a decimal. At a 60% gross margin: 1 ÷ 0.60 = 1.67×. That is the ROAS at which the campaign neither makes nor loses gross profit.
What margin should I use?
Gross margin: (revenue − cost of goods sold) ÷ revenue, before ad spend. Using net margin would double-count ad spend; using revenue alone ignores the cost of what you sell.
My ROAS is above break-even. Am I profitable?
On gross profit, yes — but fixed costs (rent, salaries, software) still sit outside this calculation. Break-even ROAS is a floor for campaign decisions, not a promise of overall profitability.
Why do some advertisers target 3× or 4× ROAS?
Usually because their margins demand it, or because they are pricing in acquisition costs and overhead. There is no universal "good ROAS" — the right target comes from your own unit economics.
One number isn't the whole picture
A calculator tells you where you stand. Adsevon — an advertising intelligence and optimization platform — watches your campaigns continuously, finds the spend that isn't pulling its weight, and prioritizes what to fix next, with the evidence attached.