Break-even ROAS
Calculator.
We work out the ad return your order contribution can support.
Your assumptions
Illustrative defaults only, never Further or client figures. Currency is AUD, excluding GST. Enter 20 for 20%. Optional fields can stay blank or zero. Your inputs stay on this page.
Scenario result
Break-even ROAS
2×
- Pre-ad contribution per order
- A$50.00
- Break-even CPA
- A$50.00
- Target ROAS
- 3.33×
Each order leaves A$50.00 to pay for the ad that won it, so 2.00x is the floor an ad has to clear before it earns anything. To hit your target margin on top of that, the ads need 3.33x.
The maths
Variable cost = 30 + 5 + 8 + 2 + 3 + 2 = 50 AUD.
Pre-ad contribution = 100 - 50 = 50 AUD.
Break-even ROAS = 100 / 50. Target ROAS = 100 / (50 - 20% × 100).
Before you use it
Fixed overheads are excluded. Include expected returns as an average cost per order and use revenue excluding GST.
This is a planning scenario, not a forecast or financial advice. Compare it with your actual order and customer records before changing spend.
Questions worth asking
What does break-even ROAS cover?
It covers the variable costs you enter, including expected returns. It excludes fixed overheads, so meeting this ROAS alone doesn't cover all business costs.
Why can target ROAS show N/A?
Your target margin must leave a positive allowance for advertising. If it doesn't, no positive ad budget can meet that margin.
Keep working through the numbers
Put the numbers to work.
We can look at the assumptions with you and decide what to test next.