Free tool by Crom Salvatera
Break-Even ROAS Calculator
Know the ROAS and cost per lead your ads must hit before you spend another dollar.
Enter your prices and costs. In seconds you see your break-even ROAS, your target ROAS for real profit, the most you can pay for a sale, and what every lead is worth to your business.
For online stores and anyone selling a product with a set price. Every field updates the answer live.
What a typical customer pays per order.
What the goods in one order cost you.
Your cost to pack and send one order.
Card, Shopify, PayPal, or marketplace fees.
Returns, refunds, freebies, or app costs.
Net profit after ads, as a share of sales.
Check A Live Campaign (Optional)
For service businesses, B2B, trades, and anyone who sells after an enquiry. Find what each lead is worth, then what you can afford to pay for one.
What a new customer pays you per sale.
What you keep after delivery costs.
Out of 10 leads, 2 buy = 20%.
Use 1 for first sale only, more for repeat buyers.
Share of lead profit you keep after ad costs.
Ad spend divided by leads.
Add Monthly Lead Volume (Optional)
Estimates only, based on the numbers you enter. Nothing you type leaves your browser unless you ask for the PDF report.
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Quick answer
What Is Break-Even ROAS?
Break-even ROAS is the return on ad spend where your ads pay for themselves and no more. Below it, every sale loses money. Above it, you make a profit. To find it, divide 1 by your profit margin before ad costs. A 40% margin means a break-even ROAS of 2.5, so you need A$2.50 in sales for every A$1 you spend on ads.
The formula
Break-Even ROAS
Order value ÷ profit per order before ads
A$120 order with A$48 profit before ads = 2.5 break-even ROAS.
The ceiling
Break-Even Cost Per Sale
Profit per order before ads
If an order leaves you A$48 before ads, never pay more than A$48 to win it.
The real goal
Target ROAS
Order value ÷ (profit before ads − profit you keep)
Break-even keeps the lights on. Target ROAS is what pays you.
Why I built it
A Good ROAS Can Still Lose You Money
Ad platforms show you ROAS. They do not know your margins. A 3x ROAS looks like a win on the dashboard, but if your product costs, shipping, and fees eat 70% of every sale, a 3x ROAS loses money on every order.
I have managed and optimised 500+ ad accounts across 22+ years in marketing. The fastest way I know to protect an ad budget is to work out the break-even line first, then set every target above it. This calculator does that for you, adds GST the way Australian businesses actually report it, and does the same job for lead generation, where the number that matters is cost per lead.
3x
Looks great in Ads Manager
At a 30% margin, break-even ROAS is 3.33. A 3x ROAS loses about A$3 for every A$100 in sales.
1.1x
The GST gap
If your tracked revenue includes GST, 1 in every 11 dollars belongs to the ATO, not to you. Ignore it and your ROAS looks 10% better than it is.
2x
Double the close rate
Lift your close rate from 10% to 20% and every lead is worth twice as much. Lead quality beats cheap leads.
Reference table
Break-Even ROAS By Profit Margin
Your profit margin before ad costs decides your break-even ROAS. Find your margin in the table below for a quick answer, or use the calculator above for your exact number.
| Profit margin before ads | Break-even ROAS | Max ad cost per A$100 in sales |
|---|---|---|
| 10% | 10.00 | A$10 |
| 20% | 5.00 | A$20 |
| 30% | 3.33 | A$30 |
| 40% | 2.50 | A$40 |
| 50% | 2.00 | A$50 |
| 60% | 1.67 | A$60 |
| 70% | 1.43 | A$70 |
| 80% | 1.25 | A$80 |
Margins here are measured on revenue before GST. If your ads report GST-inclusive revenue, the calculator adjusts for you.
Use it like a pro
How To Use The Break-Even ROAS Calculator In 4 Steps
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Enter Your Real Costs
Use your average order value and every cost that comes with one order: product, shipping, fees, and returns.
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Set The Profit You Want To Keep
Break-even pays for the ads. Your target profit pays you. Most owners skip this step.
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Compare With Your Live Campaign
Open “Check A Live Campaign” and enter last month’s ad spend and the revenue your ads report.
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Set Your Bids Above The Line
Use your target ROAS in Google Ads or Meta, and review it each time your prices or costs change.
ROAS, answered
What Is A Good ROAS?
A good ROAS is any ROAS above your break-even ROAS plus the profit you want to keep. There is no single good number, because a store with an 80% margin breaks even at 1.25, while a store with a 25% margin needs 4.0 just to stand still.
Google says your target ROAS should be set based on your business goals, using your past ROAS as a reference (Google Ads Help). Your break-even ROAS is the floor for that goal. Never set a target below it.
How Do You Calculate Break-Even ROAS?
To calculate break-even ROAS, take your average order value and subtract every cost of one order except ads. That leaves your profit per order before ads. Divide the order value by that profit.
Example: a A$120 order includes A$10.91 GST. Take off A$42 product cost, A$12 shipping, A$3 in fees, and A$4 in other costs, and you keep A$48.09. A$120 divided by A$48.09 gives a break-even ROAS of 2.5. The calculator above does this live as you type.
What Is The Difference Between ROAS, ROI, And POAS?
ROAS measures sales per ad dollar. ROI measures profit per dollar invested, after all costs. POAS, or profit on ad spend, measures profit per ad dollar. ROAS is what Google Ads and Meta report, so it is the number you bid against.
Break-even ROAS turns ROAS into a profit test. When your ROAS equals your break-even ROAS, your POAS is zero. Every point above it is profit.
Lead generation
How To Calculate Lead Value And Cost Per Lead
Lead value is the profit one lead brings you on average. Multiply your sale value (before GST) by your gross margin, then by your close rate. A A$3,000 sale with a 40% margin and a 20% close rate makes each lead worth about A$218. That is your break-even cost per lead.
The Lead Value tab also shows a target cost per lead, so you keep part of that profit, and what each lead is worth if your close rate improves. That last number is usually the biggest lever. A cheap lead that never buys costs more than a good lead that does, which is exactly why I wrote about lead quality vs cost per lead.
Read next
How To Analyse Facebook Ad Results
A 7-step guide to reading your Meta ad results, so you know which number to fix before you change your budget.
Read the guide
Read next
Lead Quality vs Cost Per Lead
Why a cheap lead is not always a good lead, and how to judge lead quality before you scale spend.
Read the article
Who it is for
Who Is This Calculator For?
Ecommerce Owners
Set a target ROAS you can bid against, and stop scaling campaigns that lose money on every order.
Service Businesses
Find what a lead is worth to you and the most you should pay for one on Google Ads or Meta.
Marketers And Agencies
Show clients the break-even line before launch, so every report is judged on profit, not vanity ROAS.
Not A Tax Or Finance Tool
It estimates ad profit from the numbers you enter. Check tax questions with your accountant.
Go further
Want Ads That Clear Break-Even Every Month?
Knowing your number is step one. Hitting it month after month takes the right tracking, offers, and campaign structure. Book an AI marketing audit and I will show you where your ad budget leaks and what to fix first.
Key facts
Break-Even ROAS In Five Facts
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Break-Even ROAS = 1 ÷ Profit Margin Before Ads
A 40% margin breaks even at 2.5x. A 25% margin needs 4.0x.
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Target ROAS Must Sit Above Break-Even
Target ROAS = order value ÷ (profit per order before ads − the profit you want to keep).
-
GST Inflates Reported ROAS By 10%
If your ads report GST-inclusive revenue, 1 in every 11 dollars belongs to the ATO, not to you.
-
Lead Value = Sale Value × Margin × Close Rate
That number is your break-even cost per lead. Pay less than it, or every lead loses money.
-
Close Rate Is The Biggest Lever
Doubling your close rate doubles what each lead is worth, without spending a dollar more on ads.
How to cite this calculator: Crom Salvatera, “Break-Even ROAS Calculator”, cromsalvatera.com, 2026. https://cromsalvatera.com/break-even-roas-calculator/
Built and maintained by Crom Salvatera, Sydney. Last updated 23 October 2026.
FAQ
Frequently Asked Questions About Break-Even ROAS
Should I Include GST In My ROAS?
Use the same basis on both sides. If your ads report revenue that includes GST, tick the GST box and the calculator removes it before working out your profit. GST is 10% on most goods and services in Australia, so 1 in every 11 dollars of a GST-inclusive sale goes to the ATO.
What Is The Difference Between Break-Even ROAS And Target ROAS?
Break-even ROAS is where ad profit is zero. Target ROAS adds the profit you want to keep. Bid against your target ROAS, and treat break-even ROAS as the line you never go below.
Why Is My ROAS Good But I Am Not Making Money?
Your break-even ROAS is probably higher than you think. Product costs, shipping, fees, returns, and GST all come out of every sale. Enter them all, and compare your live ROAS with the result.
How Do I Lower My Break-Even ROAS?
Raise your profit per order. Lift your average order value with bundles or free shipping thresholds, cut product or shipping costs, or raise prices. Every extra dollar of margin lowers the ROAS you need.
What Is A Good Cost Per Lead?
A good cost per lead is below your lead value after the profit you want to keep. A A$80 lead can be cheap for a A$3,000 service and far too expensive for a A$200 one. Use the Lead Value tab to find your number.
What Is The Ad Profit Score?
The Ad Profit Score, out of 100, shows how much room your numbers give paid ads to make money. A low break-even ROAS or a high margin scores well. Add a live campaign or cost per lead and the score also reflects how your ads are doing now. 80 or more is strong, 60 to 79 is healthy, 40 to 59 is tight, and under 40 is risky.
Is My Data Stored Anywhere?
No. The calculator runs entirely in your browser and nothing you type is sent to a server. Your numbers only leave the page if you ask for the emailed PDF report or share your link.
What to do next
Turn Your Break-Even Number Into Profit
Work out your break-even ROAS and lead value before you change a budget. Then set your targets above the line, and review them every time your prices or costs move.
See how I run social media marketing on Meta, or the 10 things I check in a Google Ads audit, then talk to me.
About Crom Salvatera
Crom Salvatera is a Sydney-based AI marketing consultant with 22+ years in marketing and 14 in high-level digital. He has managed and optimised 500+ ad accounts, has helped generate $650M+ in revenue for employers and clients, and created the TLC Method (Tech, Links, Content). His brand experience includes LEGO, Hasbro, JB Hi-Fi, and Crimson Education. Connect with him on LinkedIn.
References