Calculate Minimum Required ROAS
Determine the minimum ROAS needed to break even based on your profit margin. Any ROAS above this threshold generates profit.
Your profit margin after costs (COGS, shipping, etc.)
Formula: Break-Even ROAS = 100 / Profit Margin % (e.g., 25% margin = 4x ROAS needed)
Profit Margin: Revenue minus all costs (COGS, shipping, overhead) divided by revenue
Safety Buffer: Target 20-30% above break-even ROAS to account for fluctuations
Scaling Decision: Only scale campaigns that consistently exceed break-even ROAS
Improve Margins: Negotiate better COGS, optimize shipping, reduce overhead to lower break-even point
Test different margin scenarios and ROAS targets with MockBid's simulation platform.
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