Advertising

How to Calculate Break-even ROAS

Break-even ROAS shows the ROAS you need before ad spend starts eating into your gross margin. It still does not cover full company profit or operating overhead.

Match gross margin honestly

Use margin as a percent of revenue after discounts and refunds, with COGS counted the same way Finance does—or close enough for a planning pass.

One attribution window for compare

If you judge live ROAS on a seven-day click window, compare break-even to that same seven-day slice.

Mixing windows makes the ceiling feel wrong.

Stress the edges

Run a pessimistic margin (lower percent) once. Promotions or returns can change real margin before the dashboard catches up.

You only need a tighter threshold to show why spend needs care.

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