TwinEcom

Free tool

ROAS & break-even ROAS calculator.

Free for ecommerce — enter your ad spend, revenue and gross margin to instantly see your ROAS, ACOS, break-even ROAS (BEROAS) and real profit after ad spend.

Your numbers

Enter a period's ad spend, the revenue it generated, and your gross margin.

Results

4.00x
ROAS
25.0%
ACOS
2.50x
Break-even ROAS
Rs 60,000
Profit after ad spend
Profitable — your 4.00x ROAS is above your 2.50x break-even.

What is ROAS?

ROAS (Return On Ad Spend) is revenue divided by ad spend. A 4.00x ROAS means every Rs 1 (or $1) you spent on ads returned Rs 4 in revenue. It's a revenue ratio — on its own it says nothing about profit. For that, you need your break-even ROAS.

What is break-even ROAS (BEROAS)?

Break-even ROAS — often shortened to BEROAS — is the ROAS at which ad revenue exactly covers your product cost and your ad spend. The formula is simple:

Break-even ROAS = 1 ÷ gross margin

Anything above your BEROAS is profit; anything below is a loss. Here's what break-even ROAS looks like at common margins:

Gross marginBreak-even ROAS
20%5.0x
25%4.0x
30%3.3x
40%2.5x
50%2.0x
60%1.7x

What is ACOS, and how does it relate to ROAS?

ACOS (Advertising Cost of Sale) is the inverse of ROAS: ACOS = ad spend ÷ revenue = 1 ÷ ROAS. A 25% ACOS is the same as a 4.0x ROAS; a 50% ACOS is a 2.0x ROAS. The calculator above shows both so you can read whichever your platform reports.

Why "real" ROAS matters in ecommerce

Platform-reported ROAS ignores returns. In a cash-on-delivery market like Pakistan, refused orders (RTO) don't count as revenue — so your real ROAS is lower than the dashboard says. Subtract your return rate before you decide a campaign is winning. (More on this in what is a good ROAS and how to reduce RTO.)

How to lower your break-even ROAS

You don't only win by raising ROAS — you win by lowering the ROAS you need. Increase your gross margin or your average order value and your break-even ROAS drops, so the same campaigns turn profitable.

FAQ

What is ROAS?

ROAS (Return On Ad Spend) is revenue generated divided by ad spend. A 4.00x ROAS means every Rs 1 (or $1) of ad spend returned Rs 4 in revenue.

What is break-even ROAS (BEROAS)?

Break-even ROAS, or BEROAS, is the ROAS at which ad revenue exactly covers product cost and ad spend. BEROAS = 1 ÷ gross margin. At a 40% margin your break-even ROAS is 2.5x, so you profit above 2.5x.

What is a good ROAS?

A good ROAS is any ROAS comfortably above your break-even ROAS, with cushion for returns and overheads. A 4x ROAS can lose money at a low margin while a 2x ROAS profits at a high margin — your margin decides your target.

What is ACOS, and how does it relate to ROAS?

ACOS (Advertising Cost of Sale) is ad spend ÷ revenue — the inverse of ROAS. ACOS = 1 ÷ ROAS. A 25% ACOS is the same as a 4.0x ROAS; a 50% ACOS is a 2.0x ROAS.

How do I lower my break-even ROAS?

Raise your gross margin (better pricing, lower COGS) or your average order value — both reduce the ROAS you need to break even, so campaigns turn profitable sooner.

Want us to beat your current ROAS? Book a free strategy call — TwinEcom scales ecommerce stores on profit, not vanity ROAS.

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