Free Advertising Break Even ROAS calculator with clear step-by-step results.
Finds the return on ad spend at which a campaign exactly pays for itself. Refunds are stripped from revenue, gross margin is applied and per-order fulfilment is deducted, leaving the contribution each order makes toward advertising. Break-even ROAS is the reciprocal of that contribution expressed as a share of order value.
Contribution per order
Contribution = AOV x (1 - return rate) x gross margin - fulfilment cost
Break-even ROAS
Break-even ROAS = AOV / contribution per order
No. Break-even is the floor - at that number you make zero profit. Targets are usually set well above it so the channel funds overhead and growth.
More of each sale is left over to pay for advertising, so you can afford to spend more per dollar of revenue and still come out even.