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Calculate ROAS and your break-even ROAS

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.

Your numbers

Gross margin %

For example, 40 for 40%.

Optional: work margin out from one order. Used only when the margin field is blank.

Average order value (optional)

COGS / variable cost per order (optional)

Result

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.

Break-even ROAS formula: 1 divided by your margin

Break-even ROAS is 1 ÷ gross margin. For example, 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.

How to read break-even vs platform ROAS

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.

Set any target ROAS above this floor, and translate it into Google's reported numbers first.

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.

Thexly reports ad performance against payment revenue in Stripe, Lemon Squeezy, Polar, Dodo, and Yolfi, per client, without the spreadsheet.

See Agency plan Start free