BREAK-EVEN ROAS
Find the minimum ROAS your campaigns must hit before ad spend starts destroying margin.
Price, COGS, shipping, and variable fees.
Margin, max CAC, cost multiplier, and floor ROAS.
Protecting profitability before scale.
Core Formula
Break-Even ROAS = 1 / Net Margin
If contribution profit falls to zero or below, there is no workable break-even ROAS because the product is losing money before advertising even starts.
Margin Inputs
Define the unit economics.
Profit Margin
51.67%
Break-Even ROAS
1.94x
Max CAC
$62
Cost Multiplier
3.00x
Unit Economics
Formula Stack
Contribution Profit = Selling Price - Variable Costs
Profit Margin = Contribution Profit / Selling Price
Break-Even ROAS = Selling Price / Contribution Profit
Equivalent Formula = 1 / Profit Margin
Max CAC = Contribution Profit
Use this as your no-excuses floor. If campaign ROAS trends under this number, scale is working against you rather than for you.
Model Campaign ROAS->Frequently Asked Questions
Why can break-even ROAS be high?
Thin margins force your campaigns to return more revenue per dollar spent just to avoid losing money.
What costs belong here?
Include any variable cost that scales with each order: product cost, fulfillment, shipping, payment processing, and marketplace fees.
More Tools
Compare the floor to the forecast.
Once you know your minimum viable ROAS, run a forward-looking spend scenario to see whether the campaign actually clears that bar.