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Breakeven ROAS calculator

A real contribution-margin model, not a one-line shortcut. Enter your full cost stack and get your true breakeven ROAS, your maximum cost per acquisition, and the ROAS you need to hit a target profit.

Order economics
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%
$
%
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Profit goal
%
Breakeven ROAS 1.9x
Contribution margin / order$31.35
Contribution margin52%
Max cost per acquisition$31.35
To keep 15% net margin, run 2.6x Max CPA $22.35
Every dollar of ad spend must return $1.91 to break even.

How this breakeven ROAS is calculated

Most calculators use 1 / margin and stop there. That overstates how much you can really afford, because it ignores the costs that eat an order before ads are even in the picture. This tool builds the number from your actual contribution margin:

  • Contribution per order = order value minus cost of goods, minus payment fees, minus shipping and fulfilment, adjusted for your refund rate.
  • Max CPA = that contribution. It is the most you can pay to acquire an order and still break even.
  • Breakeven ROAS = order value divided by max CPA (the same as 1 divided by your true contribution margin).

Set a target net margin and the tool goes a step further: it holds back the profit you want to keep, leaves a lower allowable CPA, and shows the higher ROAS you need to actually hit that profit rather than just survive.

What is a good breakeven ROAS?

There is no universal number, because it is set entirely by your cost stack. What matters is the gap between this breakeven and the ROAS your account actually delivers. A wide gap means room to scale. A thin gap means the lever is your margins, offer, or account structure, not more budget. If your real ROAS keeps landing near this breakeven, that is usually where the money is leaking.

FAQ

What is breakeven ROAS?
Breakeven ROAS is the return on ad spend at which your ad revenue exactly covers your product costs and your ad costs. Below it you lose money, above it you make a profit. It equals your average order value divided by your contribution margin per order.
Why not just use 1 divided by margin?
Because that ignores real costs. A true breakeven has to account for cost of goods, payment processing fees, shipping and fulfilment, and returns. Once you subtract all of those from the order value you get the contribution margin, which is the money actually available to pay for ads. Breakeven ROAS is order value divided by that contribution.
What is my maximum cost per acquisition (CPA)?
Your max CPA is your contribution margin per order, the profit left after product and fulfilment costs but before ad spend. Pay less than that to acquire a customer and you profit, pay more and you lose money. Breakeven ROAS is simply order value divided by that max CPA.
How do I hit a target profit margin, not just breakeven?
Set the target net margin field. The tool subtracts the profit you want to keep from your contribution margin, leaving a lower allowable CPA, and shows the higher ROAS you must run to hit that profit. If the target is higher than your contribution margin allows, it is not reachable at any ROAS without changing the economics.

Running above breakeven but still not scaling? That is exactly what I fix.

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