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At which ROAS do you actually make money?

A ROAS of 4 sounds good — but is that profit or just revenue cosmetics? Enter your margin and see in seconds your break-even ROAS, your maximum CPA and the budget you need to hit your growth target.

Calculate now What is break-even ROAS?

1 Mio. €+ Werbebudget verantwortet
Ex-Google Performance-Berater
120+ Kunden im DACH-Raum

1 · Your economics

Avg. order/deal value 120 €

Margin (contribution margin before ad spend) 30 %

Desired profit (% of revenue) 10 %

2 · Your growth target

Desired sales/leads per month 50

Conversion rate of your website 2,5 %

Avg. cost per click (CPC) 1,50 €

Background

Break-even ROAS explained in 60 seconds

The ROAS (return on ad spend) tells you how much revenue you make per euro of ad budget. A ROAS of 4 means: €1 budget → €4 revenue. Sounds good — but says nothing about profit.

The only formula you need to remember:

Break-even ROAS = 100 ÷ margin in %

At a 25% margin you need a ROAS of 4 just to break even. At a 50% margin a ROAS of 2 is enough. That is why the same ROAS can be a profit fireworks display for one shop and a loss-making deal for another.

For lead gen you do the mirror image with the CPA: deal value × margin = the most a lead is allowed to cost you. You'll find both perspectives in the calculator above.

FAQ

Frequently asked questions about the ROAS calculator

What is the break-even ROAS?

The ROAS (return on ad spend) at which your advertising pays for itself: revenue divided by ad spend. If your margin is 30%, you need at least a ROAS of 3.33 — only above that do you make money. Anything below is revenue cosmetics.

Why is a ROAS of 2 often not enough?

Because ROAS only measures revenue, not profit. At a ROAS of 2 and a 30% margin, every €100 of ad budget brings in €200 of revenue — but only €60 of that is contribution margin. You lose €40 per €100 of budget. That is exactly what this tool spells out for you.

What is the difference between ROAS and CPA?

ROAS = revenue ÷ ad spend (common in e-commerce). CPA = cost per conversion (common in lead gen). Both describe the same economics from two directions — the calculator shows you both numbers.

Which margin should I enter?

The contribution margin before ad spend: sale price minus cost of goods, shipping, payment fees and other variable costs — divided by the sale price. Fixed costs like rent do not belong here.

Are my numbers stored or transmitted?

The calculation runs entirely in your browser. Nothing is sent to a server — your margins stay your business secret.

Do your campaigns not know their break-even?

I bring tracking and campaign management onto a profit basis: conversion values, target-ROAS bidding and reporting that shows profit instead of clicks.

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