What Is Break-even ROAS?

Break-even ROAS is the point where revenue from ads exactly covers ad spend after every other cost on the order xe2x80x94 product, packaging, courier and fees xe2x80x94 has already been paid for. Spend beyond it and the order loses money; stay under it and the order is profitable.

Why ROAS alone is not enough

A campaign can show a healthy 3x ROAS and still lose money if the product’s margin cannot support it. Break-even ROAS turns your specific product economics into a single number you can compare any campaign against.

How to calculate it

Work out your contribution margin xe2x80x94 selling price minus product cost, packaging, courier and payment fees xe2x80x94 then divide selling price by that margin. The Break-even ROAS Calculator does this instantly, including the impact of COD returns.

Using it day to day

Check your live campaign ROAS against your break-even number daily. If live ROAS is trending toward break-even, it is time to review targeting, creative or bids before the campaign turns unprofitable.