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Break-even ROAS calculator
Below break-even ROAS, each dollar of ad-driven revenue does not cover product cost plus ads. This uses gross margin only: a simple floor, not full contribution margin.
For example, 40 for 40%.
Enter your gross margin to see break-even ROAS.
Illustrative only. Ignores fixed costs, refunds, payment fees, and overlapping platform credit. Compare against payment-verified ROAS / MER, not summed Meta+Google ROAS.
How to read break-even vs platform ROAS
Break-even ROAS is 1 ÷ gross margin. At 40% margin, each $1 of revenue leaves $0.40 after product cost, so you need $2.50 of revenue for every $1 of ads just to stand still. That is 2.50x.
Compare it with a ROAS that counts each sale once, like MER from payment revenue. Next to summed Meta + Google ROAS, double-counting can make an account look above break-even when the money says otherwise.
It is a floor, not a target. Fixed costs, refunds and payment fees all sit on top.
Check it against real numbers
Size the double-count with the platform vs payment gap calculator, then work out the payment-verified ratio with the MER calculator. If MER sits below break-even, the ads are not paying for themselves yet, whatever the platform dashboards say.
Where Thexly fits
Thexly does not work out margin for you. It shows payment-verified revenue per client, live, so you have an honest number to hold against break-even. See how it works for agencies, or start free.
Related tools
Other free calculators
Platform vs payment gap
Enter Meta claims, Google claims, and payment collected. See the dollar and % gap.
MER / blended ROAS
Payment revenue ÷ total ad spend. The number that survives a Stripe check.
Want this live for every client?
Thexly reports ad performance against payment revenue in Stripe, Lemon Squeezy, Polar, Dodo, and Yolfi, per client, without the spreadsheet.