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What return do your ads need?

Type your gross margin. See the return on ad spend where the ads exactly pay for themselves, and the return you need to keep a profit on top.

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Break-even ROAS
2.5×
Target ROAS
3.33×
Most ad spend per order to break even
20.00
Most ad spend per order at your target
15.00

How it works

  1. Type your gross margin: price less the cost of the goods, as a share of the price.

  2. Type the profit you want to keep from each sale after the ad, if any.

  3. Read the break-even ROAS and the target ROAS, and the most you can spend for each sale.

Want this done for you, every week?

Runner gives growth a whole team: it finds the leads, sends each one your introduction, and drafts the posts and ads. You set the number it works toward.

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Questions about the Break-Even ROAS Calculator

How is break-even ROAS calculated?

Break-even ROAS is one divided by your gross margin. At a 40% margin, that is 1 divided by 0.4: the ads must bring in 2.5 times what they cost to cover the goods and the ad.

How is the target ROAS worked out?

Subtract the profit you want to keep from your margin, and divide one by what is left. Keep 10 of a 40 margin, and the ads have 30 to spend: a target ROAS of 1 divided by 0.3, about 3.33.

Does it work for a first order that brings a regular?

It treats each sale on its own. If a new customer keeps coming back, the customer lifetime value calculator shows what they are worth over time, and you can choose to spend more than one sale's margin to win them.

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