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BUSINESS

Break-even ROAS Calculator

Find the return on ad spend and maximum CPA needed to break even.

CALCULATOR GUIDE

How to use the Break-even ROAS Calculator

Calculate contribution margin, maximum acquisition cost and the minimum return on ad spend required to avoid losing money on an order.

Formula

Contribution = order value − cost of goods − payment fees − other variable costs. Break-even ROAS = order value ÷ contribution.

Worked example

A $100 order with $40 COGS, 3% fees and $7 other variable cost contributes $50, so break-even ROAS is 2.00×.

Assumptions and limits

This is an order-level model. Refunds, repeat purchases, overhead, taxes and attribution differences can change profitability.

Frequently asked questions

What does 2× ROAS mean?

It means two dollars of tracked revenue for every dollar of advertising spend.

Why does gross margin affect break-even ROAS?

Advertising is paid from contribution after product and other variable costs, not from total revenue.

How this calculator works

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.