Use this free Break-Even ROAS Calculator to determine the minimum Return On Ad Spend required for your advertising campaigns on platforms like Facebook Ads, Google Ads, TikTok, Instagram Ads, and more to be profitable. Understanding your break-even point is crucial for setting realistic advertising goals.

• Gross Margin (%): Enter your product or service gross profit margin. Calculated as (Revenue - Cost of Goods Sold) / Revenue * 100.
• Average Order Value ($) (AOV): Input the average revenue you generate from a single customer order.
• Ad Spend ($): Specify the total advertising budget you plan to spend for the period you're analyzing (e.g., monthly ad spend).

Advanced Settings (Optional): For a more precise calculation, include these additional costs per order:

• Shipping Costs ($): Average cost to ship one order.
• Variable Costs ($): Include any other costs directly tied to an order (e.g., payment processing fees, packaging materials).
• Repeat Purchase Rate (%): Estimate the percentage of customers who make additional purchases. Factoring this in can lower your required break-even ROAS.

Understanding Your Results:

• Target ROAS: This is the minimum Return On Ad Spend (Revenue generated / Ad Spend) you must achieve to cover all costs (COGS, ad spend, variable costs). Aiming for a ROAS higher than this target means profitability.
• Required Conversions: This shows the exact number of sales (conversions) needed at your average order value and profit margin to fully cover your planned ad spend.

Enter your specific business numbers into this marketing calculator. The Target ROAS and Required Conversions will update instantly, helping you make informed decisions about your advertising strategy and budget allocation for platforms like Google Ads and Facebook Ads.