Return on ad spend (also known as ROAS) is one of the most important metrics for business owners especially when they do advertisements. Essentially, ROAS will determine if you will have a profit or how much profit you can get with the advertisement you're investing.For instance, if you profited a $100 from a $25 of ad spend, that would mean that your ROAS is 4X. (Also referred to as 400% by multiplying it by 100)Break-Even ROAS, on the other hand, is another concept of determining the minimum Return on Ad Spend. This is where you will find if you're about to lose money.\n\n\n\nHow To Calculate Your Break-Even ROAS\n\n\n\nTo calculate your break-even point, you will need a few things.\n\n\n\nRevenueCost of goods being soldMiscellaneous fees (Amazon fees, or Shopify fees)Profit per sale\n\n\n\nLet's say that you sold something and you profited a $100 of revenue. The cost of the good is $20, and you also have other fees for $21, that would mean that you would have a final profit of $59.What this means is that each time you sell this product, you will make $59.Now, you can use this profit as your break-even ad spend.Meaning if you spend $58, you're going to have $1 profit and if you spend $60, you're going to lose a dollar profit.In conclusion, $59 is your break-even.Finally, to get your Break-Even ROAS, divide your initial profit per product by your break-even.\n\n\n\nBreakEvenROAS = 100 \/ 59 = 1.69\n\n\n\nThat would leave you a minimum ROAS of 1.69.\n\n\n\nWhat is a Good Break-Even ROAS?\n\n\n\nOf course, when you calculate your ROAS, the first thing that you would want to see is how much you would profit from your ad spend. If you're profiting from your ad spend that means you're good to go.But when it comes to numbers, having a break-even ROAS greater than 2 is what you should be targeting. However, having between 1.2 to 1.9 ROAS can also be a good sign.Overall, as long as you are profiting, you're good.