What break-even ROAS means
ROAS (return on ad spend) is revenue from ads divided by what the ads cost. A ROAS of 3x means $3 of sales for every $1 of ads. Whether 3x is good depends entirely on your margin. Break-even ROAS is the point where the ads pay for themselves and you make exactly $0 on those sales.
Break-even ROAS = order value ÷ profit before ads
Break-even CPA = profit before ads
Target ROAS = order value ÷ (profit before ads − profit you want)
Example
Orders average $40 and cost $20 to fulfil, so you make $20 before ads. Break-even ROAS is 40 ÷ 20 = 2.0x, and you can pay up to $20 in ads per sale. To keep $5 per order after ads, you need 40 ÷ 15 = 2.67x.
Once you know your target, plan a campaign with the Facebook ads calculator or the Pinterest ads calculator.
Frequently asked questions
Is a ROAS of 2 good?
Only if your break-even ROAS is below 2. A business with a 50% margin breaks even at 2x; one with a 25% margin needs 4x just to break even.
Should I count repeat purchases?
This calculator looks at the first order only. If customers often buy again, you can afford a lower ROAS on the first sale, but that is a bet on future orders.
Last reviewed: November 2026 · By Muhammad Shujah