If you’re running Google Ads or Meta Ads and asking “Am I profitable or just spending money?”, the answer lies in one metric:
Understanding break-even ROAS helps you:
- Know the minimum ROAS required to avoid losses
2) Set realistic performance benchmarks
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2 o]p3) Scale campaigns with confidence
In this blog, I’ll explain break-even ROAS in simple language, with clear formulas and real-world examples.
What Is ROAS?
ROAS (Return on Ad Spend) tells you how much revenue you earn for every 1 unit of currency spent on ads.
Formula:
ROAS = Revenue ÷ Ad Spend
Example:
Ad Spend = ₹10,000
Revenue = ₹40,000
ROAS = 4.0
This means for every ₹1 spent, you earned ₹4.
What Is Break-Even ROAS?