Calculate your Break-Even ROAS?
Use our ROAS calculator and calculate your profit potential.
Use our ROAS calculator and calculate your profit potential.
ROAS stands for Return on Ad Spend and is an important KPI for measuring how profitable your ads are. This KPI shows how many euros you generate for every euro you spend on advertising. A ROAS of 6 means that for every euro you invest in ads, you earn 6 euros in revenue.Platforms like Facebook display ROAS at the campaign, ad set, and ad level, allowing you to track profitability at every stage. When your ROAS is 1, it means you’re spending exactly the same amount on ads as the revenue your conversions generate.
The Break-Even ROAS helps you determine the point at which your ads neither make a profit nor a loss. It’s the minimum ROAS you need to break even on your campaigns.If your ROAS falls below your Break-Even point, you lose money; if it rises above it, you make a profit.
By knowing your exact Break-Even ROAS, you can clearly identify which campaigns, ad sets, and ads are performing well — and which ones you should pause or optimize.
The formula for calculating your Break-Even ROAS is:
Total revenue per product / (Total revenue per product – Total cost per product) = Break-Even ROAS
For example, if you sell a product for €55 and you pay €15 for sourcing and €5 for shipping, the calculation looks like this:
55 / (55 – (15 + 5)) = 1.57
This means you need a ROAS of at least 1.57 to break even.
Any ROAS below this number means you’re losing money on your ads, while any ROAS above it generates profit.
Fortunately, there’s an easier way to calculate your Break-Even ROAS. The Break-Even ROAS calculator saves you a lot of time and helps prevent calculation errors.
This tool allows you to quickly determine your specific break-even point, so you know exactly which ROAS you need to achieve to remain profitable.
Regularly checking your Break-Even ROAS gives you confidence that your campaigns are generating not just revenue, but real profit.With our ROAS calculator, you can also choose whether to include VAT (21% or 9%) in your calculations.
If you notice that your ROAS is below the desired level, it’s time to reassess your strategy. We’re ready to help you with that.
Brandpeak is ready to work with you to build a successful strategy for your business, grounded in proven methods, data-driven campaign optimizations, and years of specialized experience.
Book a free, no-obligation introduction call and discover how we can improve your advertising performance.
“Since we started working with Brandpeak, our online sales have risen remarkably. Sven and Yosy’s personal approach fits perfectly with how we do business, and their direct approach results in increasing online sales. Thanks Sven and Yosy 😉”
We have been working with Brandpeak for almost a year now for recruitment marketing and are still very happy with the collaboration. We are kept well informed of the results and new opportunities. We have already recruited quite a few new colleagues through the ads, which is much more cost-effective than hiring an agency. So we’re super pleased!
We really enjoy working with Brandpeak. We are always on the same page. Sven and Yosy come up with lots of ideas, so we can brainstorm effectively about new periods and strategies. Furthermore, they always respond and take action very quickly – and so do we – which is why we saw an upward trend in our online sales very quickly. They really think along with us; it’s not just about increasing budgets, but truly about the long term. Besides the social media ads, we can also turn to them for our Shopify webshop optimization. We do a lot in-house, but sometimes we get stuck on technical issues and then, fortunately, there’s a Shopify expert on the Brandpeak team whom we can consult. A great all-in-one package!
We have been working with Brandpeak for a while now, and we are extremely satisfied with the results. The Meta Ads have had a significant impact on our revenue and customer acquisition. The success in that area also led us to decide to try TikTok Ads, and we are already seeing positive results! What we find especially great about the collaboration with Brandpeak is their expertise in UGC Content. The team knows exactly how to reach and engage our target audience. In short, we definitely recommend Brandpeak for companies looking to improve their marketing strategy and see concrete results.
We get pretty crazy from all the marketing agencies that approach us. Every story sounds fantastic, but the reality is often different. How great is it that for a number of years now we’ve been able to work with an agency that we know executes everything we expect, and does so with far above-average results. Moreover, they think along well with us and continue to come up with great initiatives for us. So we are very satisfied.
We have been advertising with Garden Center De Oosteinde via Meta Ads for about 2.5 years now. Brandpeak is our reliable and flexible partner with whom we can leverage our marketing strategy to become more visible online. Partly due to the efficient ad strategy and the ability to advertise seasonally, I would definitely recommend Brandpeak.
Brandpeak is incredibly flexible, especially in times like these (with labor market issues) when you quickly need help recruiting people. With a phone call or email, you often have a campaign running via the Job Marketing service within a day, and you have interested applicants available daily. We have been able to fill a number of key positions this way. We’re easily talking about at least 50 colleagues in various roles within our company. We have also carried out marketing campaigns with Brandpeak via Meta Ads, through which we managed to boost our revenue with proven results in subscription sales and children’s parties. This amounted to roughly €83k in returns with a total expense of about €8k in promotion budget.
Top partner. As a marketing manager of an e-commerce brand with 5+ years of experience, I can say that the communication and results with Brandpeak are excellent. Fast, meticulous, they do what they say, extremely available, very flexible and full of ideas! In addition, I find Sven and his team pleasant people to brainstorm and communicate with. I would definitely recommend Brandpeak!
"Sinds we samen werken met SMMAH is onze online verkoop opmerkelijk gestegen. De persoonlijke aanpaak van Sven en Yosy past perfect bij hoe wij zaken doen en hun directe aanpak resulteer in een stijgende online verkoop."
"Sinds we samen werken met SMMAH is onze online verkoop opmerkelijk gestegen. De persoonlijke aanpaak van Sven en Yosy past perfect bij hoe wij zaken doen en hun directe aanpak resulteer in een stijgende online verkoop."
"Sinds we samen werken met SMMAH is onze online verkoop opmerkelijk gestegen. De persoonlijke aanpaak van Sven en Yosy past perfect bij hoe wij zaken doen en hun directe aanpak resulteer in een stijgende online verkoop."
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Brandpeak specializes in Paid Social Advertising (Meta & TikTok Ads) and Content Creation. We don’t offer 30 different services, but instead have focus, allowing us to excel in our services.
After our years of experience, we know exactly what works and what doesn’t. Instead of following a fixed script, we create a custom strategy for your company based on strong content and well-thought-out social marketing strategies.
Thanks to our large client base, we are also in a position to benchmark your company’s data against our other clients, allowing us to pinpoint exactly where your business can still improve and how we can change this. At Brandpeak, we ensure your company gets the attention and expertise it deserves.
Just as a doctor cannot make a diagnosis without first speaking with their patient and conducting the necessary examinations, we cannot provide a price without first getting to know you and your company. We need to know where your company currently stands, where you want to go, what is needed for that, and what is feasible. An introductory meeting is therefore always without obligation.
We take the advertising on the agreed platforms off your hands from A to Z – from strategy to execution and from monitoring to optimization. You therefore no longer need to concern yourself with your company’s Meta and/or TikTok Ads.
Leading up to that, we need a few hours of your time to set up all the peripheral matters properly. For content creation, it depends on whether you have chosen a content package or decided to create content in-house. During the collaboration, communication is of course key.
We may take over the advertising completely, but we do expect answers to practical questions and the freedom to execute our strategy.
Additionally, we appreciate having the space and time to brainstorm together about additional creative ideas.
We very often hear in the market about choking contracts of one year, 3 years, or even 5 years. Aside from not believing in them, we also feel that doesn’t convey a lot of confidence.
We find transparency important, and that’s why you should know that a partnership with Brandpeak starts with a 90-day pilot and is thereafter always terminable on a monthly basis. We use the 90 days to get the system working optimally – often we succeed even before the 90 days are up – but for companies that have never advertised before and where everything has to be built from scratch, it might take some time and optimizations. The 90 days start once the first ads are live.
All of our current partners could end the collaboration tomorrow if they wanted to; the fact that they don’t speaks for itself. We can offer this way of working together because we are convinced of our added value and the long-term partnerships that result from it.
Of course you can do that! Many of our partners initially left it to their online marketer, but what we often see is that the advertising isn’t done properly and, at best, not as effectively as it could be.
If you want to excel in advertising on Meta and/or TikTok, it requires an enormous amount of time; it’s too simplistic to think it can be done “on the side” along with all the other marketing activities the online marketer already has to handle. The result is often a waste of ad budget and disappointing outcomes.
Then you might consider hiring someone internally with that specialized knowledge, but the annual costs of a full-time Senior Paid Social Advertiser quickly exceed €70,000, plus benefits. That’s if you can even find a good Paid Social Advertiser, because most either freelance or start their own agency. Additionally, you’d have to manage that person and have the expertise to judge whether he or she is doing the job well.
That’s why for many companies this choice simply isn’t sensible. By hiring a specialized agency, you get years of experience from a team of experts, which in most cases costs you far less money and time compared to hiring someone internally.
This largely depends on the peripheral matters such as any CRO optimizations that need to be completed, content creation, and installing tracking tools. On average, the ads are live within 3–6 weeks.