Break-even ROAS is the minimum return on ad spend required to cover variable costs on each dollar of revenue. Below that floor, ads lose money before overhead.

• Guardrail setting

  Prevents scaling campaigns that look good but destroy margin.

• Offer design

  Shows how COGS and fees raise the ROAS you must hit.

• Channel targets

  Gives media buyers a floor, not a vanity goal.

• Pricing insight

  Margin improvements lower required ROAS.

• Risk control

  Stops profitable-looking dashboards from hiding losses.

1. 01

   COGS / delivery

   Higher product or service cost raises break-even.

2. 02

   Payment fees

   Processors and payouts reduce contribution.

3. 03

   Discounts

   Promotions shrink margin and raise required ROAS.

4. 04

   Shipping / fulfillment

   Variable logistics costs matter in ecommerce.

5. 05

   Refunds

   Return rates effectively lower contribution.

6. 06

   Overhead

   Break-even here is variable-cost only — overhead still needs coverage.

A break-even ROAS calculator turns variable cost assumptions into the minimum ROAS your ads must achieve to avoid losing money on a contribution basis.

• Set floors fast

  Translate margin into a media target.

• Protect profit

  Avoid scaling below contribution break-even.

• Margin scenarios

  See how COGS changes required ROAS.

• Buyer alignment

  Give paid teams a clear constraint.

• Offer decisions

  Pressure-test discounts before launching.

1. Step 1

   Enter COGS per $1

   Use delivery or product cost per revenue dollar.

2. Step 2

   Enter other variable costs

   Include fees and variable overheads.

3. Step 3

   Read break-even ROAS

   Use it as the campaign floor.

4. Step 4

   Set target above it

   Add profit and fixed-cost requirements separately.

The “good” number is the one that matches your real contribution margin. Lower break-even ROAS (from higher margin) gives paid media more room to scale. If break-even is very high, fix margin or AOV before buying more traffic.