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Breakeven ROAS Calculator
Find the lowest ROAS at which your ads stop losing money, and the ROAS you need to hit a profit target.
Your numbers
$
$
$
Shipping, packaging, payment fees, expected returns
%
Starting values are examples. Replace them with your own figures.
Results
Breakeven ROAS
1.86x
Order value ÷ contribution per order before ads
ROAS for your profit target
2.29x
Contribution per order before ads
$43
Contribution margin before ads
53.8%
Maximum ad cost per order to break even
$43
The formulas
- Contribution per order = order value − product cost − other variable costs
- Breakeven ROAS = order value ÷ contribution per order
- Target ROAS = order value ÷ (contribution per order − target profit per order)
How to read the result
Below the breakeven ROAS, every order your ads win costs you money. Above it, each order adds profit. If the result shows a dash, your costs are as high as your order value, so no ROAS can break even.
Include expected returns in the variable cost field, because refunded orders still cost you shipping and fees.