Break-even ROAS Calculator: ROAS & CPA Targets for Google and Meta Ads
Find the minimum ROAS and maximum cost per order or lead your business can afford, then set targets that leave a profit.
These targets only work if your conversion tracking is accurate. If Google Ads or Meta miss conversions, your real ROAS is higher than reported and good campaigns get cut.
How break-even ROAS is calculated
Break-even ROAS is 1 divided by the share of each sale you keep after product cost and other per-order costs. If you keep 40% of the order value, you need a ROAS of 2.5x just to cover ad spend. Anything above that is profit, anything below it loses money.
Using the numbers in Google Ads and Meta
Use the target ROAS as a starting point for tROAS bidding in Google Ads or as the goal for Meta cost cap and ROAS goal campaigns. For lead generation, the target cost per lead becomes your tCPA. Check them against real profit every month, not just platform reports.
Frequently asked questions
What is a good ROAS?
There is no universal number. A good ROAS is one above your break-even point. A store with high margins can be profitable at 2x while a low-margin store may need 5x or more.
Should I use reported ROAS from the ad platform?
Only if tracking is accurate. Missing or duplicated conversions make reported ROAS wrong in either direction, so fix tracking before setting targets.
How do I calculate the maximum cost per lead?
Multiply your average deal value by your profit margin and your close rate. If a deal is worth $1,500 at 60% margin and you close 20% of leads, each lead is worth $180 in profit.
Ready to fix your tracking and scale your ads?
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