Paid Media Target Benchmark
Break-Even ROAS Calculator
Calculate your minimum Return on Ad Spend (ROAS) multiplier and contribution margin ratio before launching Meta, Google, or TikTok ad campaigns.
Ad Spend & Contribution Parameters
Contribution Profit$40.00
Contribution Margin %40.00%
Break-Even ROAS2.50x
Profit at 2.5x ROAS$0.00
Profit Performance Across ROAS Tiers
| Campaign ROAS | Ad CAC Spend / Order | Net Profit / Order | Net Margin % |
|---|---|---|---|
| 1.50x | -$66.67 | -$26.67 | -26.67% |
| 2.00x | -$50.00 | -$10.00 | -10.00% |
| 2.50x | -$40.00 | $0.00 | 0.00% |
| 3.00x | -$33.33 | $6.67 | 6.67% |
| 4.00x | -$25.00 | $15.00 | 15.00% |
Break-Even ROAS Formula
Contribution Profit = Selling Price - All Variable Costs Pre-Ads
Break-Even ROAS = Selling Price / Contribution Profit
Example: $100 Price / $40 Contribution Profit = 2.50x Break-Even ROAS
Need Order-Level Profit Modeling?
Use our Flagship Product Margin Calculator for complete order breakdown.