Minimum profitable ROAS

Break-even ROAS

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%
Break-even ROAS = 1 รท Gross margin
The minimum ROAS at which a campaign stops losing money, given your product margin. Anything above this is profit.
Break-even ROAS
2.50x

At a 40% margin you need at least 2.50x ROAS to break even.

Profit above2.50x ROAS
Margin40%