Tools
Calculate your break-even ROAS
The break-even ROAS is your campaigns' profitability threshold: below it, you're paying to sell. It depends solely on your margin – not on benchmarks.
Your break-even ROAS
COGS + shipping + payment fees + a realistic returns share.
Break-even ROAS
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- Contribution margin
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- Contribution margin in %
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Fill in the fields – the result appears instantly.
Campaigns below – ROAS burn money. Your target ROAS should sit clearly above it so profit remains after fixed costs.
Your variable costs reach or exceed the selling price – no ROAS in the world makes this profitable. Review pricing, COGS or shipping costs.
Runs entirely in your browser – no sign-up, nothing stored.
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Formula & example
The break-even ROAS formula
First the contribution margin (what's left per order after variable costs), then the threshold:
Contribution margin = price − variable costs · Break-even ROAS = price ÷ contribution margin
Example
- €80 selling price − €48 variable costs = €32 contribution margin (40%)
- €80 ÷ €32 = break-even ROAS 2.5 – the profit zone starts at ROAS 2.5.
Next step in the funnel
From campaign view to the big picture: MER.
Attribution likes to lie. MER measures your total marketing efficiency against total revenue – the most honest steering metric in e-commerce.
Related content
Terms in the glossary
FAQ
Frequently asked questions
Which costs count as variable costs per order?
Everything incurred with each order: cost of goods (COGS), shipping and packaging, payment fees and a realistic returns share. Fixed costs like rent or salaries don't belong here – those are covered from the contribution margin.
How do returns factor into the break-even ROAS?
Cleanest as a per-order cost share: with a 10% returns rate and €8 cost per return, add €0.80 to your variable costs. Alternatively, calculate with net revenue after returns.
Why should my target ROAS sit above break-even?
Break-even only covers variable costs – fixed costs, team and profit aren't paid yet. As a rule of thumb we set the target ROAS 20–50% above break-even depending on the fixed-cost structure.