Break-even ROAS calculator
A $100 order with $40 of goods and $10 of other variable cost breaks even at 2× ROAS. 50% of the order is left after variable cost, so you need $2 of revenue for every $1 of ads.
Break-even ROAS = 1 ÷ contribution margin. Contribution margin is (selling price − cost of goods − other variable cost) ÷ selling price. The same identity is selling price ÷ contribution per order. This page does not use a platform’s reported ROAS.
Worked example
- Selling price: $100
- Cost of goods: $40
- Other variable cost: $10
- Contribution per order: $50
- Contribution margin: 50%
- Break-even ROAS: 2×
When variable cost is at least the selling price, the order loses money before ads and there is no break-even ROAS.