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Break-Even ROAS Calculator

Estimate the ad revenue multiple needed to cover spend at a given contribution margin.

Use a consistent reporting periodCheck the calculation below

Your business figures

Runs on your device

METRIC SNAPSHOT

Your result

Let’s calculate.

Use the Calculate button to see your result.

Review the method below for assumptions and conventions.

How to use this tool

  1. Enter contribution margin before ads.
  2. Select Calculate to view the result.
  3. Check the method and assumptions below before using the result.

The method, explained

Break-even ROAS = 1 ÷ contribution margin fraction, or 100 ÷ margin percentage.

A WORKED EXAMPLE

At a 40% contribution margin before ads, break-even ROAS is 2.5× because 2.5 × 0.40 = 1.

What to keep in mind

The margin must exclude the ad spend being evaluated and reflect the relevant non-ad variable costs. Fixed overhead and desired profit are not automatically covered.

Common questions

Does meeting this ROAS mean the business is profitable?

Not necessarily. It covers advertising against the assumed contribution but may leave fixed costs uncovered.

Can I enter gross margin?

Only if it represents the relevant contribution after other variable costs. Otherwise the threshold may be too optimistic.

Methodology maintained by ClarityKit. How these tools are built and checked.