ADVERTISING ECONOMICS

Break-even ROAS Calculator

Calculate contribution before ads, maximum CPA, break-even ROAS and target ROAS from your ecommerce order economics.

Order economics before ads

Average order value ($)

COGS ($)

Shipping + fulfillment ($)

Marketplace/payment fees ($)

Returns/other variable cost ($)

Target profit margin (%)

Advertising ceiling

Contribution before ads

Break-even ROAS

Maximum CPA at break-even

Target ROAS

Formula

Break-even ROAS = Revenue ÷ Contribution Before Ads

Break-even means modeled profit after advertising is zero. A commercial target normally needs a buffer for profit, volatility and costs not represented in the inputs.

Read the Break-even ROAS Guide