What break-even ROAS is
It's the return on ad spend where your advertising neither earns nor loses money. It's net revenue per order divided by your contribution margin per order — the money left after VAT and every variable cost.
Drop the guesswork. Calculate exactly how much you can pay for a customer before your advertising stops being profitable. 📈
Below this ROAS your advertising costs you money. Above it, you earn.
–
The calculation is a guideline based on your own figures. Fixed costs are spread across your monthly order volume (30 days).
Break-even ROAS is the single most important number when scaling paid media. It tells you where advertising stops being an investment and starts being a loss.
It's the return on ad spend where your advertising neither earns nor loses money. It's net revenue per order divided by your contribution margin per order — the money left after VAT and every variable cost.
Without it every budget decision is guesswork. With it you know which campaigns to scale, which to cut, and how much you can afford to pay for a new customer across Meta Ads and Google Ads.
They use gross revenue including VAT and only subtract COGS. Shipping, transaction fees, packaging, pick & pack and returns are quietly ignored — and the result looks far too comfortable.
Contribution margin doesn't pay salaries, software or agency fees. If advertising should carry the whole business — not just cover itself — include fixed costs. It raises your break-even ROAS, but it's the honest number.
Bring your numbers and we'll review your setup together — tracking, structure, margins and channels. Concrete feedback you can act on, whether or not we end up working together.
Book a free strategy call