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What is Break-even ROAS?

Break-even Return on Ad Spend · عائد نقطة التعادل

Quick answer

Break-even ROAS is the lowest ROAS at which your ads stop losing money. Below it you lose money on every sale; above it you make a profit.

The formula

Break-even ROAS = 1 ÷ Profit margin (before ads)

Example in JOD

If 40% of each sale is left after product cost, shipping and fees, break-even ROAS = 1 ÷ 0.40 = 2.5. A ROAS of 2 would lose money; a ROAS of 3 makes a profit.

Try it: Break-even ROAS calculator

–x ROAS

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