Glossary/Marketing Finance/Break-Even ROAS
Marketing Finance
Break-Even ROAS
The minimum return on ad spend needed to cover product and variable costs, calculated as one divided by contribution margin percentage.
By Brandon Mina·CEO, BrandPilot AI·Updated November 2026
Short answer
Break-even ROAS is the minimum return on ad spend a campaign needs to cover product and variable costs without losing money. It is calculated as one divided by the contribution margin percentage, so a 40% margin requires a ROAS of 2.5. Campaigns below break-even ROAS lose money on each sale before fixed costs.