Break-Even ROAS Calculator
One divided by contribution margin.
Break-even ROAS
2.38×
3.33× to keep 12%
Break-even ROAS and break-even ACOS are the same fact stated twice — one is the reciprocal of the other. At 42% contribution you need 2.38× ROAS or, equivalently, an ACOS below 42%.
How the Break-Even ROAS Calculator works
Break-even ROAS is one divided by contribution margin, and break-even ACOS is the contribution margin itself. They are the same fact stated twice, which is why an ACOS that looks alarming and a ROAS that looks fine are frequently the same number.
Not financial advice. Marketplace fees change, and they vary by country, plan and seller status. Every rate here is an editable default, not a quoted price — check the platform's current fee schedule before you price a product against it. This is not tax or business advice.
Frequently asked questions
How is break-even ROAS calculated?
One divided by your contribution margin. At 40% contribution the break-even is 2.5×; at 25% it is 4×; at 20% it is 5×.
Why does margin matter more than ad skill?
Because it sets the target. A 65% margin product forgives a lot of mediocre advertising; a 25% margin product punishes even good advertising, because 4× ROAS is genuinely hard to sustain on cold traffic.
What should be in contribution margin?
Everything variable — cost of goods, payment processing, fulfilment, packaging and expected returns. Leaving any of them out lowers the apparent break-even and produces spend decisions that lose money.
Should I run at break-even deliberately?
Sometimes — for a launch, to defend position, or where repeat purchase makes the first order worth acquiring at no margin. The problem is doing it accidentally and calling it a strategy afterwards.