Free tool
Work out the ROAS and CPA you actually need, from your real margin. Break-even is where you stop losing money; target is where you hit the profit you want. Use these as the bid targets you set in Google Ads or Meta.
Break-even ROAS
2.50x
Below this you lose money on the order.
Break-even CPA
$32.00
The most you can pay to acquire one order and break even.
Target ROAS
4.00x
Hit this to earn your target profit after ad spend.
Target CPA
$20.00
Pay at or under this per order to hit the target.
Break-even ROAS is 1 divided by your gross margin (a 40% margin needs 2.5x just to break even). Target ROAS adds the profit you want to keep. Set these as your Google or Meta bid targets.