What this calculator tells you
Break-even ROAS is the advertising return needed before an order contributes anything to overhead or profit. It is a safer campaign floor than a generic target chosen by habit.
When to use it
Use it when setting a minimum ROAS for cold traffic, testing a new product, or comparing multiple offers.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
Using revenue-based margins instead of contribution-based margins can make a profitable target look worse than it really is.
Frequently asked questions
What is the difference between break-even and target ROAS?
Break-even ROAS covers variable costs. Target ROAS is higher and includes the profit you want to earn.
Does a high break-even ROAS mean I should not advertise?
It means the order has a smaller contribution margin. You may need a lower CPA, a higher price, or a cheaper fulfillment route.
Should refunds be included?
For a conservative estimate, subtract an expected refund rate from the selling price before calculating contribution.
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