Advertising economics

Break-even ROAS calculator

Use gross margin and variable fees to calculate the minimum ROAS needed to avoid a negative advertising contribution.

No CSVNo sign-upRuns in your browser
YOUR ASSUMPTIONSChange a number. The answer updates immediately.
CALCULATED ANSWER
Minimum ROAS182% · 1.82×
Ad contribution margin55.0%

Set the minimum ROAS from the margin left after product and variable costs.

FORMULA1 ÷ (gross margin − variable fees)
Allocate budget with channel ROAS
HOW TO READ IT

Use the answer as a decision boundary

ROAS above the threshold

Variable costs may be covered; verify incrementality and scale limits.

ROAS below the threshold

Revenue can grow while advertising contribution remains negative.

FAQ

Questions before using this number

What does 300% ROAS mean?

It means 3× revenue for each unit of advertising cost.

Why does gross margin matter?

ROAS measures revenue, not profit. Break-even needs the share of revenue that remains after direct costs.