Formula
Break-even ROAS = 1 / gross margin
Why it matters
It equals one divided by gross margin, so a 40 percent margin gives a break-even ROAS of 2.5. Campaigns above the figure add profit toward overhead, and those below lose money.
Glossary // B / Accounting
What is Break-even ROAS?
Definition
Break-even ROAS is the lowest return on ad spend at which a campaign covers product costs and ad spend.