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Ecommerce break-even ROAS calculator
ROAS on its own tells you nothing. This tells you the number below which every sale loses money, calculated from your actual margin.
- Contribution margin
- ·%
- Gross profit per order
- ·$
- Break-even ROAS
- ·x
- ROAS for 30% net margin
- ·x
Result
Break-even ROAS is your average order value divided by the gross profit that order leaves behind. Spend above it and the order is profitable before overheads. Spend below it and you are buying revenue with your own money, which is why ROAS quoted without a margin figure is meaningless.