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Break-Even ROAS Table
Break-even ROAS is the floor your margin sets: the return at which ads make exactly nothing. The formula is 1 ÷ margin. Anything below your row loses money; your target belongs comfortably above it.
| Profit margin | Break-even ROAS | Meaning |
|---|---|---|
| 10% | 10.00x | $10.00 revenue per $1 of ad spend |
| 15% | 6.67x | $6.67 revenue per $1 of ad spend |
| 20% | 5.00x | $5.00 revenue per $1 of ad spend |
| 25% | 4.00x | $4.00 revenue per $1 of ad spend |
| 30% | 3.33x | $3.33 revenue per $1 of ad spend |
| 35% | 2.86x | $2.86 revenue per $1 of ad spend |
| 40% | 2.50x | $2.50 revenue per $1 of ad spend |
| 45% | 2.22x | $2.22 revenue per $1 of ad spend |
| 50% | 2.00x | $2.00 revenue per $1 of ad spend |
| 60% | 1.67x | $1.67 revenue per $1 of ad spend |
| 70% | 1.43x | $1.43 revenue per $1 of ad spend |
| 80% | 1.25x | $1.25 revenue per $1 of ad spend |
Formula: break-even ROAS = 1 ÷ profit margin
How to use this table
Operator secretBreak-even moves when shipping is free
Find your row using margin after product, shipping, and payment costs. That number is your floor. Then apply two corrections before setting a Google Ads target: read your non-branded ROAS against it (blended numbers flatter the account, as covered in the branded search check), and price in repeat purchases where they honestly exist. For the full budget math, the budget calculator runs your numbers end to end.
FAQ
What is break-even ROAS?
Break-even ROAS is the return on ad spend at which your ads generate exactly zero profit: revenue covers ad cost plus the cost of goods, nothing more. The formula is 1 divided by your profit margin. At a 40% margin, break-even ROAS is 2.5: every dollar of ad spend must return $2.50 in revenue just to not lose money.
How do I calculate my break-even ROAS?
Divide 1 by your profit margin expressed as a decimal. A 25% margin gives 1 / 0.25 = 4.0 break-even ROAS. Use margin after product, shipping, and payment costs, before ad spend.
Should my target ROAS equal my break-even ROAS?
No. Break-even is the floor, not the target. Set targets above break-even by enough to fund the profit you actually want, and remember repeat purchases: a customer worth three orders can justify running the first order near break-even.
Why does a blended ROAS number mislead against this table?
Because branded search inflates the blend. Someone who already chose you clicks your brand ad, and that near-free revenue makes the average look comfortable while cold acquisition may sit below break-even. Always compare NON-branded ROAS against this table.