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Margin is what you keep on a sale before ad cost. Break-even ROAS is simply 1 divided by that margin.
Your numbers
- ROAS
- 4.00x
- Break-even ROASStay at or above this to profit
- 2.50x
- Gross profit (before ads)
- Rs 32,000
- Net after ad spend
- Rs 12,000
Profitable: your ROAS is at or above break-even, so these ads make money after product margin.
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Question & Answer
ROAS Calculator: common questions
Real questions SEO buyers ask Dcrayon before signing on. Pricing, timelines, and the AI-search reality. No fluff, no jargon.
ROAS is revenue from ads divided by ad spend, so Rs 80,000 from Rs 20,000 of spend is 4x. Break-even ROAS is the lowest ROAS at which the ads stop losing money, and it depends only on your margin: 1 divided by the margin. At a 40% margin break-even is 2.5x, so 4x is profitable.
Take your profit margin on a sale after product cost and fees, but before ad cost, as a decimal, and divide 1 by it. A 25% margin gives 1 / 0.25 = 4x, so every rupee of ad spend must bring back at least Rs 4 of revenue. Enter your margin above and the calculator works it out for you.
A good ROAS is any ROAS above your own break-even, not an industry average. A 3x ROAS loses money at a 25% margin, where break-even is 4x, and makes money at a 50% margin, where break-even is 2x. Work out your break-even first, then judge each channel and campaign against that line.
They are the same two numbers turned upside down. ROAS is revenue divided by ad spend; ACOS, the measure Amazon uses, is ad spend divided by revenue, shown as a percentage. A 4x ROAS is the same as a 25% ACOS. With ACOS lower is better, and your break-even ACOS equals your margin.
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Dcrayon runs paid media across Google, Meta and Amazon for businesses in India and the US, and we plan every campaign around the break-even ROAS this calculator gives you - not vanity clicks. Our PPC and marketplace teams build the margin maths into your account from day one, set bids to the target ROAS your profit goal needs, and report on profit, not just spend. If the numbers here show your current campaigns are running below break-even, a Dcrayon strategist can audit the account and tell you exactly where the money is leaking - honestly, with no inflated promises.
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