Try it / Peak Break-even ROAS
Peak Break-even ROAS
The ROAS at which ads pay for themselves, and what more budget brings.
Sample values. Change them for your own calculation.
What you spent on ads.
Revenue the ad platform attributes to the ads.
Revenue minus cost of goods, as a percentage of revenue.
Shipping, payment, returns as a percentage of revenue. Empty = 0.
Break-even ROAS
2,5×
Your ROAS: 3,6×
Contribution after ads
2.200 €
Before ads 7.200 €
Your ads pay for themselves: the ROAS is above break-even.
What happens with 20 % more budget?
Example assumptions, not a measurement. Whether extra revenue really comes from the ads only shows in a test with real data.
- Revenue grows in the same proportionROAS 3,6× · contribution 2.640 € (+440 €)
- Revenue grows only 60 % as much (diminishing returns)ROAS 3,36× · contribution 2.064 € (−136 €)
ROAS = revenue ÷ ad spend. Break-even ROAS = 1 ÷ (gross margin − variable costs) = 1 ÷ 40 %. Attributed revenue is not the same as additional revenue caused by the ads.