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Ads & Traffic

What Is ROAS? How to Calculate It and Your Break-Even Number

NetMoneyLab ยท Oct 17, 2026

In practice

Bottom line: calculating ROAS takes a few minutes and only needs your price, product cost and per-order fees. The number that matters is break-even ROAS, which depends on your margin: at a 40% margin you need 2.5 just to break even.

What is a good ROAS?

There is no single good number. A good ROAS is one that sits above your own break-even point, and that point depends on the margin of each product.

How do you find your break-even ROAS?

Break-even ROAS is the point where gross profit from ad-driven sales exactly covers what you spent on those ads.

What happens above and below break-even?

Using the same 40% margin, here is what is left from $1,000 of ad spend:

ROAS vs ROI vs POAS: what is the difference?

If you are just starting, track ROAS because the platform already shows it, but always compare it with the break-even ROAS of the product.

What is Target ROAS in Google Ads?

In Google Ads, Target ROAS is a Smart Bidding strategy where you tell Google how much conversion value you want per dollar spent, as a percentage.

What Is ROAS? How to Calculate It and Your Break-Even Number

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