Formula
Contribution = order value − cost of goods − payment fees − other variable costs. Break-even ROAS = order value ÷ contribution.
BUSINESS
Find the return on ad spend and maximum CPA needed to break even.
CALCULATOR GUIDE
Calculate contribution margin, maximum acquisition cost and the minimum return on ad spend required to avoid losing money on an order.
Contribution = order value − cost of goods − payment fees − other variable costs. Break-even ROAS = order value ÷ contribution.
A $100 order with $40 COGS, 3% fees and $7 other variable cost contributes $50, so break-even ROAS is 2.00×.
This is an order-level model. Refunds, repeat purchases, overhead, taxes and attribution differences can change profitability.
It means two dollars of tracked revenue for every dollar of advertising spend.
Advertising is paid from contribution after product and other variable costs, not from total revenue.
Enter your known values and select Calculate result. Review units and inputs before relying on the planning estimate.
Actual quantities, prices and requirements can vary. Confirm critical work with a supplier or qualified professional.