Free performance marketing tool

Break-Even ROAS, CPA & CPL Calculator.

Calculate the return on ad spend your campaigns need, the most you can afford to pay for a customer or lead, and the conversions required to cover your media budget.

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  • Built for INR
01 · Your numbers

Calculate campaign economics

All calculations happen in your browser. No financial information is stored or submitted.

₹
Average revenue received from one new customer.
%
Sale value remaining after direct fulfilment or product costs.
%
Percentage of qualified leads that become paying customers.
₹
Your planned monthly Google Ads, Meta Ads or combined media budget.
20%
Reduces the allowable CPA to provide room for profit and measurement variation.
02 · Your targets

Campaign thresholds

Calculated
Break-even ROAS2.00×

Below this return, gross profit does not fully cover advertising spend.

Suggested target ROAS2.50×Includes your safety buffer
Maximum CPA₹5,000Break-even customer cost
Suggested target CPA₹4,000After safety buffer
Maximum CPL₹1,000At your close rate
Minimum sales needed25per month at target CPA
Approx. leads needed125per month at your close rate
Revenue target₹2,50,000to achieve target ROAS

Planning estimate only. Taxes, agency fees, refunds, repeat purchases and other operating costs are not included.

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Understand the result

What is break-even ROAS?

Break-even ROAS is the minimum revenue your advertising must generate for gross profit to equal advertising cost.

A business with a 50% gross margin has a break-even ROAS of 2.00×. For every ₹1 spent on advertising, it must generate ₹2 in revenue before advertising spend is covered. This is not necessarily a profitable target because overhead, agency fees and other costs may still remain.

The calculator therefore also applies your chosen safety buffer to create a more conservative target CPA and target ROAS.

How it works

The formulas behind your targets

01

Break-even ROAS

1 ÷ gross margin

At a 40% gross margin, break-even ROAS is 1 ÷ 0.40 = 2.50×.

02

Maximum CPA

sale value × gross margin

This is the gross profit available to acquire one new customer.

03

Maximum CPL

maximum CPA × close rate

If one in five leads becomes a customer, the close rate is 20%.

04

Target CPA

maximum CPA × (1 − buffer)

The safety buffer creates space between break-even and your working target.

03 · Reading the numbers

Use thresholds, not vanity metrics.

ROAS above target

The campaign may have room to scale, but first confirm lead quality, conversion tracking and fulfilment capacity.

ROAS between break-even and target

The campaign covers gross advertising cost but may not leave enough profit after overhead and service fees.

ROAS below break-even

Review targeting, creative, offer, landing-page conversion, sales follow-up and tracking before increasing spend.

Questions, answered

ROAS calculator FAQs

What is a good ROAS?+

A good ROAS depends on gross margin, repeat purchases, overhead and growth objectives. A 2× ROAS can be profitable for one business and unprofitable for another, which is why your own break-even point matters more than a universal benchmark.

What is the difference between CPA and CPL?+

CPA is the advertising cost required to acquire a paying customer. CPL is the advertising cost required to generate a lead. CPL must be considered alongside the percentage of leads that become customers.

Should GST be included in average sale value?+

For cleaner business analysis, use revenue excluding taxes collected on behalf of the government. Apply the same accounting basis consistently across all inputs.

Does this calculator include agency fees?+

No. The calculator uses media spend and gross margin. Add agency fees, software, payment charges, refunds and overhead separately when evaluating total profitability.

Can I use this for Google Ads and Meta Ads?+

Yes. The underlying unit economics apply to Google Ads, Meta Ads and other paid channels. Calculate each channel separately when conversion rates or customer values differ significantly.

Need more than a benchmark?

Turn campaign data into better growth decisions.

Verd Media plans, builds and optimises Google Ads, Meta Ads and conversion journeys around qualified leads, sales and measurable business outcomes.