Break-even & target ROAS calculator
Your break-even ROAS is the return you have to clear before Google Ads stop costing you money, and it is set by your margin, not an industry average. Enter your numbers below to get the exact break-even ROAS for your store, and the target ROAS to hit the profit you actually want.
Why the same ROAS means different things
Break-even ROAS is 1 divided by your gross margin. A 30% margin needs about a 3.3x return just to wash its face; a 50% margin only needs 2.0x. That is why the same 3x ROAS can be a strong month for a jewelry brand and a quiet loss for a low-margin seller.
Your target ROAS is break-even plus the profit you want, worked out as 1 divided by (gross margin minus your target profit margin).
The number is only as honest as the tracking under it. If your conversion values are wrong, the ROAS is fiction in either direction — which is why we rebuild conversion tracking before we touch bidding.
Frequently asked questions
How do you calculate break-even ROAS?
Break-even ROAS is 1 divided by your gross margin, where gross margin is (AOV − COGS − other variable costs) divided by AOV. It is the return that covers your product and transaction costs with nothing left over — the floor, not a good number.
What is a good target ROAS?
There is no universal good ROAS — it depends entirely on your margin. A good target ROAS is your break-even ROAS plus enough headroom to clear the profit margin you actually want to keep, which is exactly what this calculator works out for you.
What counts as gross margin here?
Revenue per order minus the cost of goods and the variable costs that scale with each sale: payment processing, shipping you absorb, and similar transaction costs. It does not include fixed costs like salaries or software, which sit below the ad math.
Why is my real ROAS higher than my profit?
ROAS measures revenue against ad spend, not profit. An account can post a healthy ROAS while still losing money on every order if the margin underneath it is thin or the conversion values feeding the platform are wrong. That gap is usually the first thing we check in an audit.
Find out what your account is actually reporting
Send us access and we will come back with a written audit: what is tracked, what is double-counted, what is missing, and what we would change first.
No pitch deck · No lock-in · Findings are yours either way