Break-even ROAS: calculate your cost-based advertising floor
Calculate break-even ROAS from order revenue and variable costs, see margin scenarios, and distinguish the floor from a profit target.
12 focused guides
Margins & acquisition costs
Start with actual order economics. Recalculate the advertising floor when prices, discounts, fees or product mix change. A floor that covers variable costs is different from a whole-business profit target.
A useful reading order
Explore this topic
Maximum CPA: how much can you afford per order?
Calculate a break-even and target cost per order from revenue, variable costs, and the contribution you need to retain.
Margin vs markup: use the right ROAS cost basis
Avoid confusing margin with markup when estimating an advertising budget, and include costs beyond the product itself.
Fixed vs variable costs in ROAS planning
Separate order contribution from whole-business break-even and show how allocated overhead changes a ROAS planning target.
Discounts, break-even ROAS and allowable CPA
Calculate how a lower selling price changes contribution, acquisition allowance, and the volume needed to preserve contribution.
Shipping and payment fees in break-even ROAS
Account for shipping revenue, carrier costs, packaging, percentage fees, and fixed transaction charges without double counting.
Product-mix ROAS: calculate a blended cost floor
Calculate a blended break-even threshold from actual revenue and contribution instead of averaging product-level ratios.
Target ROAS calculator: retain a contribution margin
Derive a ROAS target that reserves a specified share of revenue after variable costs and advertising, with feasibility checks.
Subscription ROAS: revenue horizons and payback
Choose a clear revenue horizon for subscription advertising and compare realized contribution with acquisition cost.
Tax-inclusive vs tax-exclusive ROAS
See how including collected tax changes a ROAS ratio and how to document a consistent revenue and cost basis.
Canceled orders: reconcile completed-sale ROAS
Reconcile canceled and unpaid orders with advertising revenue without subtracting the same reversal twice.
Expected returns: build a provisional ROAS reserve
Estimate a clearly labeled returns reserve from mature order cohorts and replace forecasts with actual refunds as they arrive.
Continue with another question
ROAS fundamentals · Traffic & conversion metrics · Attribution & data quality · Budgets, offers & experiments