Use order revenue excluding buyer tax, and all non-ad variable costs such as product, shipping, packaging, processing and platform fees. Enter ad spend separately. Fixed overhead belongs in its own allocation field; it does not change the primary variable-cost threshold.
No. It breaks even on variable costs and ads only when your pre-ad contribution margin is 40%. Different costs change the threshold. Fixed overhead, returns, attribution overlap and the revenue reported by an ad platform can also change the business result.
Example inputs · not typical margins
$100 revenue, $60 non-ad costs.
$20 entered ad spend and $5 allocated fixed overhead are separate.
Which revenue and costs belong in break-even ROAS?
Use order revenue excluding buyer tax, and all non-ad variable costs such as product, shipping, packaging, processing and platform fees. Enter ad spend separately. Fixed overhead belongs in its own allocation field; it does not change the primary variable-cost threshold.
Is a 2.5 ROAS always profitable?
No. It breaks even on variable costs and ads only when your pre-ad contribution margin is 40%. Different costs change the threshold. Fixed overhead, returns, attribution overlap and the revenue reported by an ad platform can also change the business result.
What does Not reachable mean?
The order has no positive contribution after non-ad variable costs, so there is no finite positive break-even ROAS. Advertising cannot cover a loss that already exists before ads. Improve the price or cost structure first.
Is maximum ad cost the same as customer lifetime value?
No. The maximum shown covers the entered economics of one order. Repeat purchases, customer lifetime value, delayed revenue and attribution are outside this estimate. Use a consistent revenue basis when comparing with your campaign reports.
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