ROAS, Break-Even, and Target CPA Calculator

All the PPC math an enterprise team uses: ROAS, break-even ROAS, break-even CPC, target CPA from margin, and the inverse (what max CPC can I afford). All calculations run in your browser.
PPC Intelligence
The number that matters is break-even: not target ROAS.
Most teams track target ROAS. The smarter metric is break-even ROAS. the ratio below which you lose money. Your target ROAS should be some multiple of break-even that bakes in overheads, returns, and growth margin. These tools let you work backwards from gross margin to find both.
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Inputs
ROAS
5.00x
Return on ad spend
Profit (gross)
$5,000
Revenue × margin − spend
POAS (Profit on Ad Spend)
2.00x
Gross profit ÷ ad spend
Next steps
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Frequently asked questions
What is ROAS?
Return on Ad Spend. Revenue generated divided by ad cost. $5 revenue on $1 spend = 5:1 ROAS or 500%.
What is break-even ROAS?
The ROAS at which you cover costs (ad spend plus cost of goods) with zero profit. Calculated as 1 ÷ gross margin. A 40% gross margin product has a break-even ROAS of 2.5.
What ROAS should I target?
Depends on margin and the role of ad spend. For acquisition-focused campaigns 1.5x to 2x break-even is common. For pure efficiency, target double break-even.
How is ROAS different from ROI?
ROAS measures revenue over ad spend. ROI measures net profit over total cost. ROAS is simpler and quicker; ROI tells you if the business is making money.
Should I include tax in revenue when calculating ROAS?
Usually not. Report pre-tax revenue so comparisons across markets stay apples-to-apples. Confirm with finance.
What about delayed conversions?
A short attribution window undercounts ROAS. Use at least 30-day click, 7-day view for most B2C. Longer for considered purchases.
How do I calculate max CPC from margin?
Max CPC = AOV × gross margin × conversion rate. The tool does this automatically.
Does blended ROAS include organic?
Blended is total revenue over total ad spend across channels. Organic revenue is often included in the numerator which inflates ROAS. For channel-level truth, separate paid and organic.
What is iROAS?
Incremental ROAS. Revenue uplift attributable to ad spend, measured via a controlled holdout test. The honest version of ROAS.
Should ROAS include returns?
For e-commerce, yes. Report net revenue (after returns) in the numerator or ROAS will overstate for products with high return rates.
Does ROAS replace CAC and LTV?
No. ROAS is period revenue over period spend. CAC and LTV are per-customer, long-horizon metrics. Both are needed for subscription or repeat-purchase businesses.
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