The break-even ROAS formula
Break-even ROAS = Price ÷ (Price − Costs per order)Costs per order are everything a sale costs you except the ads: the product, shipping, payment fees, and the share of revenue you refund.
Price − costs per order is also your break-even CPA: the most you can pay in ads for one sale.
How to use it
Compare your actual ROAS with this number. If your ROAS is higher, the ads are making money on each sale; if it is lower, they are losing money, even though revenue is coming in.
Want a profit, not just to break even? Use the max CPA calculator with a target margin to get your target ROAS.
Questions
Why is my break-even ROAS so high?
Because little of each sale is left after costs. If costs take 75% of the price, only 25% is left for ads, so you need 4× ROAS just to break even. Raising prices or lowering costs lowers it.
Does it include my fixed costs?
No. It covers the costs of each order (product, shipping, fees, refunds). Rent, salaries and software are fixed costs; the full calculator includes them in profit.
What if I sell several products?
Use your average order value as the price and your average costs per order. For very different products, calculate each one separately.