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Get startedBreak-even ROAS
The ROAS at which a campaign exactly covers its costs — no profit, no loss.
Break-even ROAS is the return where an ad campaign pays for itself exactly. Above it you profit; below it you lose money — even if the platform reports a ‘positive’ ROAS. It falls straight out of your contribution margin: fatter margins break even at a lower ROAS.
Formula
Break-even ROAS = 1 ÷ Contribution margin
Example: A 40% margin → 1 ÷ 0.40 = 2.5× break-even ROAS.
What a good result depends on
Lower is better — it means each sale carries more margin to fund ads.
Common mistakes
- Setting ROAS targets without knowing your margin.
- Forgetting variable costs beyond COGS in the margin.