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Break-even ROAS

Break-even ROAS is the minimum ROAS needed to avoid losing money after variable costs (and optionally fixed costs / target profit).

Updated 2026-01-23

Definition

Break-even ROAS is the minimum ROAS needed to avoid losing money after variable costs (and optionally fixed costs / target profit).

How to use it

  • Use break-even ROAS when margins, fees, shipping, and returns materially affect profitability.
  • Set separate targets by channel and product because cost structures differ.

Why this matters

This term matters because it affects how you interpret performance and make budget decisions. If you use inconsistent definitions or windows, ROAS/CPA can look "better" while profit gets worse.

Practical checklist

  • Write a 1-line definition for "Break-even ROAS" that your team will use consistently.
  • Keep the time window consistent (weekly/monthly/quarterly) when comparing trends.
  • Segment results (channel/plan/cohort) before drawing big conclusions from blended averages.
  • Use a calculator that references this term (e.g., Break-even ROAS Calculator) to sanity-check assumptions.
  • Read the related guide (e.g., Break-even ROAS: how to calculate it (and set a target ROAS)) for context and common pitfalls.

Where to use this on MetricKit

Calculators

  • Break-even ROAS Calculator: Estimate the break-even ROAS based on contribution margin assumptions.
  • ROAS Calculator: Calculate Return on Ad Spend (ROAS) and estimate contribution profit after ad spend.
  • Target ROAS Calculator: Estimate a target ROAS to cover variable costs plus a desired margin buffer.
  • Max CPC Calculator: Compute break-even and target CPC (and optional CPM) from CVR, AOV, and contribution margin assumptions.
  • Break-even CPM Calculator: Compute break-even and target CPM from CTR, CVR, AOV, and contribution margin assumptions.

Guides