What is the Break-even ROAS Calculator?
Break-even ROAS is the return on ad spend at which advertising neither makes nor loses money. Formula: break-even ROAS = 1 ÷ contribution margin, where contribution margin = (order value − product, shipping, fees and other variable costs) ÷ order value. A product with a 40% contribution margin needs a ROAS of at least 2.5×.
How to use the Break-even ROAS Calculator
- Enter average order value.
- Enter product, shipping and other variable costs per order.
- Set payment/platform fee percentage.
- Read break-even ROAS and CPA.
Why use AnyShift's Break-even ROAS Calculator
Frequently asked questions
Is break-even ROAS the same as target ROAS?
Why is my ROAS positive but I still lose money?
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Last reviewed: Built for: United States, United Kingdom, Canada, Australia Part of Ecommerce & Sellers