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Break-even ROAS, instantly.
The exact ROAS your ads need to stop losing money — plus your target ROAS, max cost per order, and where every dollar of an order goes.
1 ÷ margin
The whole formula
2,000+
Marketers on Ryze
Your break-even ROAS
Target ROAS
2.70×
15% margin
Max cost / order
$31.26
Break-even CPA
Gross margin
52.1%
$31.26
Where each $60.00 order goes
Your numbers
Email me these numbers + a free audit
We’ll send your break-even breakdown and check your account against it.
How break-even ROAS works
Break-even ROAS is just the inverse of your margin. Strip every variable cost out of an order — product, shipping, fees — and what’s left is the most you can spend acquiring that order before you lose money. Divide the order value by that number and you have the revenue you need for every dollar of ad spend.
break-even ROAS = order value ÷ (order value − COGS − shipping − fees)
= 1 ÷ contribution margin
target ROAS = 1 ÷ (margin − desired profit %)
The lower your margin, the higher the ROAS you need — which is why a “2× ROAS” can be a win for one store and a slow bleed for another. Run your campaigns above break-even, not at it: leave room for returns, attribution gaps, and the profit that funds growth.
Break-even ROAS by margin
A quick reference for common contribution margins.
| Contribution margin | Break-even ROAS | Rev / $1 ad spend |
|---|---|---|
| 20% | 5.00× | $5.00 |
| 30% | 3.33× | $3.33 |
| 40% | 2.50× | $2.50 |
| 50% | 2.00× | $2.00 |
| 60% | 1.67× | $1.67 |
| 70% | 1.43× | $1.43 |
Frequently asked questions
What is break-even ROAS?+
Break-even ROAS is the minimum return on ad spend at which your ad-driven revenue exactly covers product cost, shipping, and fees — you neither profit nor lose. Below it, every sale loses money; above it, you profit. The shortcut: break-even ROAS = 1 ÷ your contribution margin.
How do you calculate break-even ROAS?+
Subtract COGS, shipping/fulfillment, and payment fees from your average order value to get your contribution margin in dollars. Then divide the order value by that margin — or just divide 1 by your margin percentage. Example: a $60 order with $28 of variable cost has $32 margin (53%), so break-even ROAS = 60 ÷ 32 = 1.88×.
What's the difference between break-even ROAS and target ROAS?+
Break-even ROAS keeps you from losing money. Target ROAS is what you aim for to hit a real profit margin: target ROAS = 1 ÷ (margin − desired profit %). Always run above break-even — typically 20–50% higher — to absorb attribution error, returns, and seasonality while still profiting.
What counts as a good ROAS?+
There's no universal number — it's relative to your margins. A 2× ROAS is healthy on 60% margins but a loss on 30%. Judge every campaign against your own break-even ROAS, not a benchmark you read somewhere.
Should break-even ROAS include shipping and fees?+
Yes. Include every variable cost per order — COGS, fulfillment, freight, packaging, payment processing, and expected returns. Leaving any of them out understates your break-even and hides losses that only show up at the bottom line.
How does Ryze use break-even ROAS?+
Ryze sets each campaign's guardrails from your true break-even, then monitors ROAS across Google and Meta 24/7 — shifting budget to what clears the bar and pausing what falls below it, before the loss compounds. It executes the change, not just flags it.
Knowing your break-even is step one. Staying above it is the job.
Ryze sets each campaign’s guardrails from your real break-even, then watches ROAS across Google & Meta 24/7 — moving budget to what clears the bar and cutting what doesn’t.
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