Free tools · ROAS
Break-even ROAS & Target CPA Calculator
A 4× ROAS can still lose money. Put your real margin in and find the number where ad spend actually turns a profit, plus the target CPA to feed your bidding.
Your numbers
40%
10%Revenue left after cost of goods & fulfilment90%
3.0×
0.5×Drag to see profit at any ROAS10×
Every £100 of ad spend at 3.0× ROAS:
Revenue £300 − goods £180 − ads £100 = +£20
BREAK-EVEN CPA / ORDER
£26.00
The most you can pay for an order before it's unprofitable. Set Target CPA below this.
YOUR POAS AT 3.0×
1.20
Profit on ad spend, £ of gross profit per £1 of ads. 1.0 is break-even.
GROSS PROFIT / ORDER
£26.00
What each order contributes before ad costs.
ROAS FOR 20% NET ON SPEND
3.00×
A sensible starting target: every £100 of ads returns £20 profit.
Genesis does this per SKU. Upload margin data and it reports true POAS across your whole catalogue, see how.
How break-even ROAS works
ROAS measures revenue per £1 of ad spend, but revenue isn't profit. The maths is simple: break-even ROAS = 1 ÷ gross margin. At a 40% margin you need 2.5× just to stand still; at 25% you need 4×. That's why two brands can run identical campaigns and one quietly bleeds cash. It's also why the industry is shifting from ROAS to POAS (profit on ad spend) and profit-based Smart Bidding: feeding margin-aware values into Google's bidding stops it chasing revenue that costs more than it makes.
FAQ
What margin should I use?
Gross margin after cost of goods, shipping, payment fees and returns, not your net margin, which already includes marketing.
Gross margin after cost of goods, shipping, payment fees and returns, not your net margin, which already includes marketing.
Should my target ROAS equal my break-even ROAS?
No, that's running at zero profit. Set targets above break-even (the "20% net on spend" figure is a sane start), and remember new-customer value: a lower first-order ROAS can be fine if repeat rates are strong.
No, that's running at zero profit. Set targets above break-even (the "20% net on spend" figure is a sane start), and remember new-customer value: a lower first-order ROAS can be fine if repeat rates are strong.
What about lead gen?
Use the break-even CPA card: replace AOV with your average customer value and margin with your close-rate-adjusted contribution.
Use the break-even CPA card: replace AOV with your average customer value and margin with your close-rate-adjusted contribution.