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Break-Even ROAS Calculator

Enter your average order value and what an order costs you. You get your gross margin, the ROAS at which ads break even and the most you can pay for a customer.

  • Free, no account
  • Live as you type
  • Maximum CPA included
whatscales.io · Break-even ROAS calculator
[ How it works ]

Three steps

  1. Enter your average order valueWhat a customer pays on a first order.
  2. Enter what the order costs youProduct, shipping and packaging, payment fees.
  3. Read your two limitsThe lowest ROAS and the highest CPA you can afford.
[ Reference ]

The break-even ROAS formula

Break-even ROAS = 1 ÷ gross margin

Gross margin = (order value − product cost − shipping − payment fees) ÷ order value. With a $60 order, $15 of product, $6 of shipping and 3% of fees, the margin is 62% and the break-even ROAS is 1.61. Below it, each sale loses money on the first order.

Maximum CPA

Maximum CPA = order value × gross margin

In the example: $37.20. It is the same limit seen from the cost side: pay more than that for a customer and the first order loses money.

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[ FAQ ]

Questions

About this tool.

What is break-even ROAS?

The return on ad spend at which the gross profit of your sales equals what you spent on ads. Above it you make money on the first order, below it you lose.

How do I lower my break-even ROAS?

Raise the margin: a higher order value through bundles, a lower product or shipping cost, or fewer discounts.

Should I count repeat purchases?

Break-even ROAS looks at the first order. If customers reorder, you can accept a lower first-order ROAS; work that out from your own repeat rate.

The tool is free. The ads are the product.

WhatScales shows what your competitors run and scale: every ad as a video, ranked inside its brand each day, with its hook, angle and transcript.

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