Break-Even ROAS Calculator

How the break-even ROAS is calculated

Every figure comes from your own three inputs — this tool uses no benchmark or industry data at all. The calculation runs in three steps:

1. Total costs to cover — your monthly COGS, fixed costs, and ad spend added together. This is also your minimum revenue target: the revenue that exactly covers everything.
2. Break-even ROAS — total costs divided by ad spend. It is the revenue multiple your ads must return before the business makes a single rupee of profit. Because the division is by ad spend, the result is undefined at ₹0 spend — the tool asks for at least ₹1.
3. Profit target and ad-cost ceiling — the profit target is 1.5× your break-even (the original tool’s “healthy profit” marker, an editorial rule of thumb), and the max ad-cost percentage is the inverse of your break-even — ad spend as a share of revenue at the break-even point.

Worked example (the tool’s defaults): ₹40,000 COGS + ₹20,000 fixed + ₹30,000 ad spend = ₹90,000 to cover → ₹90,000 ÷ ₹30,000 = 3.00x break-even, a 4.50x profit target, and a 33.3% max ad-cost share.

How to interpret your results

The difficulty bands carry over from the original tool: up to 2x is achievable for most campaigns, 2–4x takes strong targeting and creative, and above 4x is very hard to sustain — usually a sign to reduce COGS or overheads before scaling spend. Remember the break-even is a floor, not a goal: running exactly at it means every order is fully consumed by costs. If your live campaigns already report ROAS, compare it against the break-even here rather than against generic “good ROAS” figures — a 5x campaign is unprofitable if your break-even is 6x.