# Break Even Roas Calculator: A Comprehensive Guide

## Introduction

As a digital marketer, you are always looking for ways to maximize your return on advertising spend (ROAS). One of the key metrics that you need to consider is your break even ROAS. This is the minimum ROAS that you need to achieve to cover your advertising costs and make a profit. In this article, we will discuss what break even ROAS is, how to calculate it, and how to use a break even ROAS calculator to optimize your advertising campaigns.

## What is Break Even ROAS?

Break even ROAS is the minimum ROAS that you need to achieve to cover your advertising costs. It is the point at which your advertising revenue equals your advertising costs. If your ROAS is lower than your break even ROAS, you are losing money. If your ROAS is higher than your break even ROAS, you are making a profit.

### Why is Break Even ROAS Important?

Break even ROAS is important because it helps you determine the minimum performance that you need from your advertising campaigns to make a profit. By knowing your break even ROAS, you can set realistic expectations for your campaigns and optimize your advertising spend accordingly. It can also help you identify areas where you need to improve your campaign performance to reach your break even point.

## How to Calculate Break Even ROAS

Calculating break even ROAS is a simple process. You need to know your advertising costs and your profit margin. Your profit margin is the percentage of revenue that you keep after deducting all your expenses. Here is the formula:

Break Even ROAS = Advertising Costs / (Total Revenue x Profit Margin)

Break Even ROAS = \$1,000 / (\$10,000 x 0.2) = 5

This means that you need to achieve a ROAS of 5 to cover your advertising costs and make a profit.

## Using a Break Even ROAS Calculator

Calculating break even ROAS manually can be time-consuming and prone to errors. Fortunately, there are several break even ROAS calculators available online that can help you automate the process. These calculators take into account all the factors that affect break even ROAS and provide you with an accurate estimate of your break even point.

### Steps to Use a Break Even ROAS Calculator

Here are the steps to use a break even ROAS calculator:

4. Click on the “Calculate” button.

The calculator will provide you with your break even ROAS and other important metrics such as your breakeven revenue and breakeven order value.