Growth calculator

Break-Even ROAS Calculator

Calculate the return on ad spend required to cover variable costs and selected fixed campaign costs.

Inputs

Defaults are visible and can be changed before calculation.

Inline validation messages appear here when a value needs to be corrected.

Currency *Applies to revenue, spend, and fixed-cost outputs.Campaign revenue *Revenue attributed to the campaign for the modeled period.Ad spend *Media spend for the same period. Must be greater than zero.COGS rate *Cost of goods sold as a percentage of revenue, such as 40%.Payment processing rateOptional processing fees as a percentage of revenue.Fulfillment rateOptional fulfillment costs as a percentage of revenue.Refund rateOptional refunds or returns as a percentage of revenue.Sales commission rateOptional sales commissions as a percentage of revenue.Other variable cost rateAny other variable cost rate tied to revenue.Agency feesFixed campaign management fees for the period.Software feesFixed software or tooling fees allocated to this campaign.Allocated overheadOptional overhead to include when the checkbox below is enabled.Repeat purchase revenueAdditional attributable revenue included in current ROAS.Include overhead in break-even targetWhen enabled, allocated overhead is included in fixed campaign costs.

Results

Results are deterministic scenario outputs, not guarantees.

Enter values and calculate to see the summary, supporting metrics, warnings, and interpretation.

Interpretation

Deterministic interpretation rules will explain what the modeled result means once a calculation is available.

Detailed breakdown

Intermediate calculation rows will appear here after calculation.

Formula

Adjusted revenue

adjustedRevenue = revenue + repeatPurchaseRevenue

Current ROAS

currentROAS = adjustedRevenue / adSpend

Contribution margin

contributionMarginRate = 1 - (cogsRate + paymentProcessingRate + fulfillmentRate + refundRate + salesCommissionRate + otherVariableCostRate)

Break-even ROAS

breakEvenROAS = ((adSpend + fixedCampaignCosts) / contributionMarginRate) / adSpend

Contribution profit

contributionProfit = adjustedRevenue × contributionMarginRate - adSpend - fixedCampaignCosts

Assumptions

The model uses revenue and ad spend from the same period.
Percentage inputs are entered as human-readable values such as 40% and converted to decimals internally.
Break-even output is an assumption-driven scenario model, not a forecast or guarantee.
Variable cost rates must total less than 100% for break-even ROAS to be mathematically defined.

Worked example

Example: ecommerce campaign margin check

If a campaign produces $50,000 in revenue from $10,000 in spend with 43% total variable costs, the contribution margin is 57%. The modeled break-even revenue is $17,543.86 and break-even ROAS is 1.75x before optional fixed costs.

FAQ

Is break-even ROAS the same as target ROAS?

No. Break-even ROAS is the minimum modeled ROAS needed to cover selected costs. A target ROAS may be higher if you want profit, cushion, or budget efficiency.

Why do fixed fees increase break-even ROAS?

Fixed campaign costs such as agency or software fees must be covered by contribution profit, so they increase the revenue and ROAS required to break even.

Does this calculator forecast campaign performance?

No. It deterministically applies the assumptions you enter and should be used as a planning scenario, not as a prediction or guarantee.