PPC Break-Even Calculator
Find the minimum ROAS you need to cover product and fulfillment costs and a recommended target with a 20% profit buffer.
PPC Break-Even
Enter your unit economics — results update instantly.
Set Average Order Value greater than 0 to compute margins and ROAS.
How Break-Even ROAS Works
Break-Even ROAS is the revenue per $1 of ad spend required to cover your product and fulfillment costs. It is driven by your gross margin.
Break-Even ROAS = 1 ÷ Gross Margin %
Example
With an average order value of $100, COGS $30, and fees $10, gross profit is $60 and Gross Margin is 60%. Break-even ROAS = 1 ÷ 0.60 = 1.67x.
Margin & Break-Even ROAS Guide
| Gross Margin | Break-Even ROAS | Target ROAS (20% profit) | Assessment |
|---|---|---|---|
| 20% | 5.00x | 6.00x | Very challenging |
| 30% | 3.33x | 4.00x | Challenging |
| 40% | 2.50x | 3.00x | Achievable |
| 50% | 2.00x | 2.40x | Good |
| 60% | 1.67x | 2.00x | Excellent |
| 70% | 1.43x | 1.71x | Premium |
Why This Matters
Knowing your break-even ROAS tells you the revenue multiple needed to avoid losing money on paid acquisition. It helps set realistic targets and decide how aggressively to scale ad spend given your margin profile.