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Advertising break-even calculator

Enter your margin to see the minimum ROAS you need to be profitable. Add your average order value to also get your maximum CPA.

%

Your margin on a sale, before advertising costs.

$

Also gives you your maximum CPA.

Enter your margin to see the minimum ROAS you need to be profitable.

What’s the break-even point?

It’s the performance level below which a campaign loses you money. Expressed as ROAS, it’s 100 divided by your margin as a percentage: the thinner the margin, the higher the ROAS you need.

The mistake to avoid

Judging a ROAS or a CPA against a number you found online. The same ROAS of 3 is excellent on a fat margin and disastrous on a thin one. The only figure worth measuring against is your own break-even point.

Your break-even moves with your margin

A promotion or a sale cuts your margin, which raises the minimum ROAS you need: what was profitable at full price may not be at a discount. Recalculate your break-even whenever your margin changes instead of sticking to a fixed target.

Common questions

How do you calculate your ad break-even point?

Your break-even ROAS is 100 divided by your margin as a percentage. On a 25% margin you need a ROAS of at least 4 to avoid losing money; on a 50% margin, a ROAS of 2 is enough. Below that threshold, every dollar spent eats into your margin.

What’s the minimum ROAS to be profitable?

It comes down to your margin alone, not to any standard figure. The thinner your margin, the higher the minimum ROAS. That’s why a ROAS of 3 can be excellent on a high-margin product and not nearly enough on a low-margin one.

Should I express my break-even as a ROAS or a CPA?

Both describe the same limit. Break-even ROAS applies when you think in terms of revenue (online stores); the maximum CPA, equal to your margin per sale, applies when you think in terms of cost per acquisition (lead generation). Pick the one that matches your business.

Other calculators

ROAS calculatorCPA calculatorAd budget calculatorConversion rate calculatorCPM, CPC and CTR calculatorMax bid calculator (max CPC)Customer lifetime value (LTV) calculator

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