Free tools · ROAS
Break-even ROAS & Target CPA Calculator
A 4× ROAS can still lose money. Put your real margin in and find the number where ad spend actually turns a profit — plus the target CPA to feed your bidding.
Your numbers
40%
10%Revenue left after cost of goods & fulfilment90%
3.0×
0.5×Drag to see profit at any ROAS10×
Every £100 of ad spend at 3.0× ROAS:
Revenue £300 − goods £180 − ads £100 = +£20
BREAK-EVEN CPA / ORDER
£26.00
The most you can pay for an order before it's unprofitable. Set Target CPA below this.
YOUR POAS AT 3.0×
1.20
Profit on ad spend — £ of gross profit per £1 of ads. 1.0 is break-even.
GROSS PROFIT / ORDER
£26.00
What each order contributes before ad costs.
ROAS FOR 20% NET ON SPEND
3.00×
A sensible starting target: every £100 of ads returns £20 profit.
Genesis does this per SKU. Upload margin data and it reports true POAS across your whole catalogue — see how.
How break-even ROAS works
ROAS measures revenue per £1 of ad spend — but revenue isn't profit. The maths is simple: break-even ROAS = 1 ÷ gross margin. At a 40% margin you need 2.5× just to stand still; at 25% you need 4×. That's why two brands can run identical campaigns and one quietly bleeds cash. It's also why the industry is shifting from ROAS to POAS (profit on ad spend)and profit-based Smart Bidding: feeding margin-aware values into Google's bidding stops it chasing revenue that costs more than it makes.
FAQ
What margin should I use?
Gross margin after cost of goods, shipping, payment fees and returns — not your net margin, which already includes marketing.
Gross margin after cost of goods, shipping, payment fees and returns — not your net margin, which already includes marketing.
Should my target ROAS equal my break-even ROAS?
No — that's running at zero profit. Set targets above break-even (the "20% net on spend" figure is a sane start), and remember new-customer value: a lower first-order ROAS can be fine if repeat rates are strong.
No — that's running at zero profit. Set targets above break-even (the "20% net on spend" figure is a sane start), and remember new-customer value: a lower first-order ROAS can be fine if repeat rates are strong.
What about lead gen?
Use the break-even CPA card: replace AOV with your average customer value and margin with your close-rate-adjusted contribution.
Use the break-even CPA card: replace AOV with your average customer value and margin with your close-rate-adjusted contribution.