Free calculator

Break-even ROAS calculator

Break-even POAS is always 1.0 — but the ROAS you need depends on margin. Enter your margin band and optional target POAS to get the revenue floor.

Why break-even ROAS changes with margin

Break-even POAS is always 100%: ad-attributed gross profit equals ad spend. The ROAS required to reach that floor is 1 ÷ margin. A 20% margin band needs 5× ROAS just to break even; a 50% band needs 2×.

Set live targets above break-even so fixed costs and profit are covered — then enforce bands with profit uploads and A/C/X labels.

Use margin bands, not one store average

A blended margin hides thin SKUs that need impossible ROAS and thick SKUs that can scale. Segment the catalog, compute each band’s floor, then let Profit Bid upload product profit and label losers out of Shopping.

Frequently asked questions

What is break-even ROAS?

The revenue multiple needed so gross profit equals ad spend. Formula: break-even ROAS = 1 ÷ margin (as a decimal). At 25% margin, break-even ROAS is 4.0×.

Is break-even POAS always 100%?

Yes on a gross-profit basis. Add a buffer (e.g. target POAS 1.3) so contribution after ads covers overhead.

How do I apply this in Google Ads?

Upload profit values instead of revenue, then set tROAS on the profit scale — or use A/C/X labels to exclude chronic loss makers. See /docs/poas-bidding-setup.