Paid promotion

Break-even ROAS guide

Break-even ROAS depends on the contribution margin left after product cost, platform fees, fulfillment, shipping subsidies, creator commission, and sample allocation. A campaign can have strong revenue and still lose money if the margin left for ads is too small.

Simple formula

Break-even ROAS equals revenue divided by the maximum ad spend that still keeps profit at or above zero. For a more conservative view, use target profit instead of zero profit.

Better decision rule

Do not scale based on ROAS alone. Scale when contribution margin, refund rate, inventory position, creator quality, and repeat purchase potential all make sense.

Use the calculator and enter ad spend per order to see how margin changes.