Break-even Calculator for Ad Campaigns
Find out exactly how many sales you need to stop losing money on your ads — before you increase the budget.
Enter your data and click "Calculate break-even" to see results
Break-even formula for advertising
Break-even formula
Break-even sales = Ad Spend ÷ (AOV × Gross margin)
Example: $500 budget, $60 AOV, 35% margin → contribution margin per sale = $60 × 0.35 = $21 → break-even = $500 ÷ $21 = 24 sales.
The break-even point is not the goal — it is the floor. Your actual target should be a number of sales that generates meaningful profit, accounting for returns, overhead and growth objectives.
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Learn more about break-even
Read the complete guide on how to calculate break-even in ad campaigns and how to use it to set realistic ROAS targets.
Read the guide →