Скачать или смотреть Most people run ads without actually knowing where their break-even point is

Most people run ads without actually knowing where their break-even point is — and that’s exactly why they either panic too early or scale something that’s already losing money.

So in this guide, I’m going to show you the simplest and most accurate way to calculate your break-even ROAS, using a real example.

Let’s start with the basics.

Say your selling price is $1,000.
Your cost of goods, including shipping, is $300.

That means your gross profit is $700.

Now here’s where most people mess this up.

If you spend $800 to acquire a customer, you’re unprofitable.
If you spend $700, you’re not making money — but you’re not losing money either.
That’s your break-even point.

So how do you calculate break-even ROAS properly?

You take your sale price and divide it by your gross profit.

In this example:
$1,000 ÷ $700 = 1.43 ROAS

That means anything below 1.43 ROAS loses money.
Anything above 1.43 ROAS is profitable.

This number is critical because it becomes your baseline for decision-making.

If your ads are hovering around break-even, you don’t kill them — you optimize.
If you’re comfortably above break-even, you can confidently scale.
And if you’re below it, you know exactly how much room you have before things go sideways.

This is also why understanding your numbers matters more than “winning creatives” or chasing trends.

ROAS without context is meaningless.
Break-even ROAS tells you whether your business actually works.

Once you know this number, every ad decision becomes clearer, calmer, and more strategic.

That’s how real operators scale — not by guessing, but by knowing the math.

🔗 YouTube:    / @matthewbgaras  

🔗 Website: https://thebusinessbuilders.com

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