BREAK-EVEN CALCULATOR
Break-Even ROAS & CPA Calculator
The one number every advertiser needs before spending anything.
Built by Jonas Sluijs, a former Meta growth lead who managed $500M+ in ad spend.
New here? Start with what Meta ads actually cost and why break-even is the number that matters.
Take it further
Want a second opinion on these numbers?
Go through your unit economics with a former Meta growth lead. 30 minutes, no pitch, no retainer.
How to use this calculator
Enter what a customer is worth and your gross margin, then choose how quickly you need to break even. The calculator returns your break-even ROAS, your break-even CPA (the most you can pay for a customer without losing money), a target CPA with a safety margin, and the minimum daily budget to give Meta enough conversions to learn. Everything updates as you type.
What is break-even ROAS and break-even CPA?
Break-even ROAS is the return on ad spend you need just to cover the cost of your product. It is the inverse of your gross margin: at a 50% margin you need a 2.0x ROAS to break even, at 25% you need 4.0x. Below your break-even ROAS you lose money on every sale, no matter what the platform reports.
Break-even CPA is the same idea in per-customer terms. The gross profit you make on a customer is the most you can spend to acquire one and still break even.
Your target CPA sits below break-even to leave a margin of safety for the auction and for returns. Aim there, not at the ceiling.
What each input means
- What a customer is worth. Usually your average order value. If customers reliably buy again, use a longer payback window below to reflect that repeat revenue.
- Gross margin. Revenue minus cost of goods, divided by revenue. Roughly 60% is a fair estimate for ecommerce, and 80% or more for digital and software.
- Payback window. How long you are willing to wait to break even. First purchase is strict; a 30 or 90 day or lifetime window raises your allowable CPA because it assumes the customer returns and spends again.
What is a good ROAS for Meta ads?
There is no universal good ROAS, and any number quoted without a margin attached is meaningless. A 2.0x ROAS is a loss at a 40% margin and a healthy profit at an 80% margin. The only ROAS that matters is your break-even ROAS, which this calculator gives you, and then a target above it. Judge every campaign against your own floor, not an industry average. For the fuller picture of what your ads actually cost, see what Meta ads cost.
Why the minimum daily budget matters
Meta needs roughly 50 conversions per week per ad set to exit the learning phase and stabilize delivery. The minimum daily budget is your target CPA times 50, divided by seven. Spend below it and delivery stays volatile and expensive, stuck in Learning Limited. If the floor is out of reach, optimize for a higher-funnel event like Add to Cart, which is cheaper and hits the volume the system needs faster.
Common questions
Break-even ROAS is the return on ad spend you need just to cover the cost of your product. It is the inverse of your gross margin: at a 50% margin you need a 2.0x ROAS to break even, and at 25% you need 4.0x. Below your break-even ROAS you lose money on every sale, whatever the platform reports.
Break-even CPA is the gross profit you make on a customer, which is the most you can spend to acquire one without losing money. It equals customer value multiplied by gross margin. If a customer is worth 100 at a 60% margin, your break-even CPA is 60.
There is no universal good ROAS, and any figure quoted without a margin attached is meaningless. A 2.0x ROAS is a loss at a 40% margin and a healthy profit at 80%. A good ROAS is anything comfortably above your own break-even ROAS, which depends entirely on your margin.
Start from break-even CPA, which is customer value times gross margin, and take a fraction below it for safety, often around 70%. That margin of safety absorbs auction swings and returns so a normal fluctuation does not push you into a loss.
Yes, if customers repeat. Strong repeat purchase or subscription revenue lets you pay more than first-order profit to acquire a customer and earn it back later. Use a longer payback window in the calculator to reflect that.
Usually too little budget or too few conversions. Meta needs about 50 conversions a week per ad set to exit the learning phase. If you cannot fund that at your CPA, optimize for a cheaper, higher-funnel event like Add to Cart so you hit the volume the system needs.
Related: the paid social measurement guide and the test duration calculator.