How to use break-even ROAS
If contribution margin after product cost is 40%, break-even ROAS is about 1 ÷ 0.40 = 2.5x before fixed order fees and refunds. Below that, ads alone do not cover product cost. This page is educational math — not media-buying advice.
Nine tools on this page
- Break-even — ROAS and CPA floors from AOV, margin, fees, refunds.
- Target profit — revenue and contribution at a ROAS × spend.
- Units needed — orders to cover spend; optional CVR/CPC path.
- Summary — all metrics on one screen.
- Spend for goal — revenue goal ÷ ROAS → required ad spend (and CPA if AOV set).
- CPA → ROAS — AOV ÷ CPA; optional spend → revenue/orders.
- MER — revenue ÷ ad spend (optional AOV → orders).
- POAS — profit ÷ ad spend (optional margin on revenue).
- Target CPA — AOV ÷ target ROAS.
- Spend for profit — profit ÷ (ROAS × margin − 1).
Rules of thumb
- Break-even ROAS ≈ 1 / contribution margin (then tighten for fees & refunds).
- Break-even CPA ≈ contribution $ per order after fees.
- High ROAS with tiny margin can still lose money.
- Pair with MarginLab for markup↔margin and Seller fee for marketplace cuts.
- No live ad APIs — paste numbers from your dashboard.
Popular searches this tool answers
- Break-even ROAS calculator
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FAQ
What is break-even ROAS?
Roughly 1 ÷ gross margin, adjusted for fixed order fees and refunds. At 40% margin you need about 2.5x before those frictions.
How do I calculate break-even CPA?
Contribution dollars per order after product cost, refund haircut, and fixed fees. Bidding above that loses money on ads alone.
Does this connect to ad platforms?
No. Static browser math only — no Meta, Google, or TikTok APIs.
Is this financial advice?
No. Educational estimates. Refunds, shipping, overhead, and creative tests change real break-even.
Is my data private?
Yes. All math runs in your browser.
What is break-even ROAS?
It is the return on ad spend where contribution covers ad cost (and optional extras). Below that ROAS, ads lose money on a contribution basis.
Do I need Google Ads or Meta connected?
No. Enter spend, AOV, margin, and optional conversion inputs manually. Nothing connects to ad accounts.
What AOV and margin do I need for ROAS math?
Average order value and contribution margin (or gross margin after variable costs) drive break-even ROAS. Wrong margin is the most common ROAS mistake.
Is MER the same as ROAS?
Not exactly. ROAS is usually return on a channel’s ad spend. MER blends marketing efficiency across channels. Use consistent definitions when you compare periods.
What if my ROAS is above break-even but cash is tight?
Contribution can look fine while inventory, refunds, or slow payouts squeeze cash. Pair ROAS with margin and payout timing, not vanity ROAS alone.
How do I set a target ROAS for a launch?
Start from contribution margin and required profit per order, then solve ROAS. Raise the target if you need room for creative tests and returns.