Break-even ROAS

What it means

The ROAS at which ad spend exactly equals gross profit, set by your margin.

If your gross margin is 30%, every €1 of revenue leaves €0.30 to pay for the ad. So you need roughly 3.3x just to break even. At 50% margin, 2x. At 20%, 5x.

This single number decides whether a product can carry paid traffic at all, and it is the first thing we calculate in a teardown. Work yours out here.

Back to the full glossary, or read how we run accounts.