The point where contribution after advertising is roughly zero.
Free tool
Break-even ROAS calculator: target ROAS and maximum CPA.
See your business’s economic limit before you look at platform ROAS. Calculate your break-even point from average order value and contribution margin, then set a target based on the contribution you want to keep.
The theoretical maximum ad cost per order, in the same currency as your order value.
The estimated threshold that protects the contribution you want to keep.
The ad cost limit per order at your target contribution.
This is a simplified planning calculation, not net profit or a guarantee of results. Include tax, product cost, payment fees, shipping, packaging, returns and any other per-order costs correctly in your contribution margin.
01 / HOW IT WORKS
ROAS should be derived from product economics.
The tool uses two simple relationships; for a correct result, how you define the inputs matters most.
Break-even ROAS = 1 ÷ contribution margin
At a 40% contribution margin, break-even ROAS is 2.5x.
Break-even CPA = order value × contribution margin
With an average order value of 100 and a 40% contribution margin, the theoretical limit is 40 per order, in the same currency.
The break-even point does not cover fixed costs or target profit. That is why the “contribution to keep after ads” field separately accounts for the share you want to leave on each order.
Read the ROAS, MER and POAS guide02 / FAQ
What to know before you calculate.
01What is break-even ROAS?
Break-even ROAS is the revenue-to-ad-spend ratio at which contribution after advertising is roughly zero. Its simplified formula is 1 ÷ contribution margin.
02Which costs should I include in the contribution margin?
Include the variable costs tied to each order: product cost, payment fees, the shipping you pay for, packaging, discounts and an expected returns allowance.
03Can break-even ROAS be used as a target ROAS?
Usually not. The break-even point leaves no room for fixed costs or target profit, so set your target ROAS higher, based on the contribution you want to keep after advertising.
LET’S CONNECT THE MATHS TO YOUR BUSINESS DATA.