BEROAS Calculator
Calculate your Break-Even ROAS instantly. Know exactly how efficient your ads need to be to avoid losing money.
Profit Safety Check
Product Costs
You must achieve a ROAS higher than 1.56x to make a profit. Anything below this is a loss.
Sensitivity Analysis
See how increasing your price improves your safety margin.
Key Concepts
- Break-Even PointThe exact moment where your revenue equals your expenses.
- Pre-Ad ProfitHow much money you have left from a sale *before* paying for ads. This is your max CPA.
What is BEROAS and Why Does It Matter?
BEROAS (Break-Even Return On Ad Spend) is the single most critical number for media buyers. It represents the "Line in the Sand".
- If your actual ROAS is higher than your BEROAS, you are Making Money.
- If your actual ROAS is lower than your BEROAS, you are Losing Money.
Knowing this number allows you to set clear rules for your ads. For example, if your BEROAS is 1.6, you can safely turn off any ad set that is performing at 1.4, because you know for a fact it is unprofitable.
The BEROAS Formula
Or, simpler: 1 / Profit Margin %.
Example: You sell a watch for $50. It costs you $25 to buy and ship. Your profit margin is 50%.
Your BEROAS is 1 / 0.50 = 2.0. You need a 2.0 ROAS to break even.
How to Lower Your BEROAS
A lower BEROAS is better because it's easier to hit. Here is how to lower it:
Increase Price
Raising your price increases your margin, which drastically lowers your BEROAS requirement.
Lower COGS
Negotiate with suppliers or switch to cheaper shipping lines to increase the gap between price and cost.