What the result shows
The most you can spend to generate one order before that order stops covering its own costs.
True Break-Even ROAS Calculator
See the return on ad spend (ROAS) floor that covers the variable costs tied to each order.
Find your ad spend limit per order
Use average order revenue after discounts. Include every variable cost tied to that order, but leave ad spend out.
Break-even ROAS per order
1.98x
At this ROAS, the order covers the costs entered and up to $40.38 of ad spend, but leaves nothing for overhead, tax, or profit.
- Maximum ad spend per order
- $40.38
- Order value available for ads
- 50.5%
- Payment fee per order
- $2.62
Set a ROAS target that leaves room for profit.
How it is calculated
Subtract product, payment, shipping, fulfilment, returns, and other variable costs from order revenue. Divide order revenue by the amount left for ads.
How to use it
Use this as the minimum ROAS needed to cover the costs entered. Do not treat it as a profitable campaign target.
What this result leaves out
Tax, fixed overhead, and profit from later orders are not included. If repeat purchases are expected to recover acquisition cost, check customer lifetime value and payback separately.
Before you use the result
Is break-even ROAS the same as a target ROAS?
Break-even ROAS is the floor for the costs entered. A target ROAS also needs to leave room for overhead and the profit you want. There is no single target that fits every store or product.
Should I use gross margin or contribution margin?
Use the amount left after all variable costs except advertising. Gross margin usually subtracts product costs only. Leaving out shipping, payment fees, fulfilment, or expected returns makes the break-even threshold look lower than it is.
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Stop rebuilding the same calculation every week.
Nummbas brings sales, costs, products, ads, and cash flow into one view so the numbers change when the business does.