Break-even ROAS
Break-even ROAS is the return on ad spend at which a campaign neither makes nor loses money after costs. It equals 1 divided by contribution margin — a 60% margin implies a break-even ROAS of about 1.67x.
Break-even ROAS = 1 ÷ Contribution margin
For apps the margin question is mostly the store commission. Apple and Google keep 30% (15% under the small-business programs and on subscriptions after year one), so on gross revenue an app with no other variable costs breaks even at 1.43x, or 1.18x at the 15% rate. Add payment processing, server costs per user, or support and the bar rises.
Break-even ROAS is a floor, not a target. Campaigns need to clear it by enough margin to fund the team, the product, and the campaigns that failed.
Common mistake
Computing break-even on gross revenue and then measuring campaigns on proceeds — or the reverse. Pick one revenue definition and use it on both sides.
Go deeper: Blended ROAS calculator (with store-cut toggle)
Related terms
In Roasy
Roasy computes this across every ad network, Adjust, and RevenueCat on one screen — real revenue, cohort windows, and the same definition everywhere.