What is break-even ROAS?

The ROAS at which ad spend exactly equals the contribution margin from those sales. Formula: AOV ÷ (AOV − variable costs per order).

What costs should I include?

Every cost that scales with an order: product cost, packaging, shipping, payment processing, and any per-order app or fulfillment fees.

Should I target break-even ROAS?

Only if repeat purchases make the customer profitable later. Most brands target a buffer above break-even on first orders.

Free tool · Calculators

Break-even ROAS calculator

Before you judge any campaign, know the line it has to clear. Enter your price and per-order costs to get your break-even ROAS and the most you can pay per purchase.

Average order value$Product cost per order$Shipping & fulfillment per order$Payment & app fees% of AOV

Results

Contribution per order: $35.20; 58.7% contribution margin
Break-even ROAS: 1.70x
Max cost per purchase (break-even CPA): $35.20

How to use the break-even roas calculator

1Enter the average order value.
2Enter product, shipping and payment costs per order.
3Use the break-even ROAS as your floor and target above it.

Questions

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How to use the break-even roas calculator

Questions

01What is break-even ROAS?

02What costs should I include?

03Should I target break-even ROAS?

More free tools