Find the minimum ROAS and maximum acquisition cost your campaign can sustain after product, delivery, and transaction costs.
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Your numbers
Unit Economics
Add every variable cost to avoid an unrealistically low break-even target.
Methodology reviewed August 2026 · Estimates are for planning, not a performance guarantee.
How it works
Turn Campaign Assumptions Into a Useful Decision
Break-even ROAS depends on contribution margin, not gross revenue. Start with selling price, subtract product or service delivery cost, shipping, payment processing, and other variable expenses, then divide the remaining contribution by price. A 60% contribution margin produces a 1.67× break-even ROAS. Any lower return loses money before fixed overhead.
A product sells for $100. Product cost is $30, shipping is $5, payment processing is $3, and other variable cost is $2. Contribution is $60, or 60% of revenue. Break-even ROAS is 1 ÷ 0.60 = 1.67×, and maximum break-even CPA is $60. To preserve a 15% profit margin, allowable ad spend falls to $45 and target ROAS rises to 2.22×.
Better planning
Numbers Should Explain the Decision, Not Just Fill a Dashboard
01
Find the Real Floor
Build the threshold from contribution economics instead of relying on a generic ROAS target.
02
Connect ROAS to CPA
See the maximum acquisition cost that produces the same break-even point for each conversion.
03
Protect Desired Profit
Raise the operating target above break-even to preserve margin and absorb performance changes.
Questions answered
Frequently Asked Questions
Clear definitions for advertisers, business owners, and agencies planning paid campaigns.
What is break-even ROAS?+
Break-even ROAS is the minimum revenue returned for each unit of ad spend before variable costs make the sale unprofitable. At break-even, advertising profit is zero.
How do I calculate break-even ROAS?+
Calculate contribution margin after product, shipping, transaction, and other variable costs. Divide 1 by the contribution margin expressed as a decimal.
Is break-even ROAS a good campaign target?+
Usually no. It is a floor, not an ideal target. Set an operating target above break-even to protect desired profit and absorb returns, attribution error, and cost changes.
What costs should be included?+
Include every variable cost caused by the order: product or service delivery, shipping, packaging, payment fees, marketplace fees, returns allowance, and similar per-order expenses.
What is the relationship between ROAS and CPA?+
At a fixed selling price, maximum break-even CPA equals contribution per sale. Target ROAS expresses the same limit from the revenue side of the equation.
