Integrated RetailingBy Peter Benes

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Breakeven ROAS at your margin

Your breakeven ROAS is 1 divided by the margin you keep on each sale after variable costs. Enter your numbers to see it, plus the ROAS that leaves a profit.

By Peter Benes.

Before sales tax (GST/HST or US sales tax). Same currency throughout, CAD or USD.

Price minus what the goods cost you, as a share of price.

Card fees, packaging and shipping you pay, as a share of sales.

As a share of ad-driven sales. Use 0 to see breakeven only.

Margin left after variable costs
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Breakeven ROAS
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Below this, each ad-driven sale loses money.

ROAS for your profit target
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Most you can pay per order and break even
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Most you can pay per order and hit your target
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How to read this

Compare the breakeven figure with the ROAS shown in your ad account. If the account shows less, you lose money on each tracked sale before overhead. Remember that platform ROAS counts revenue, not profit, and often includes sales that would have happened anyway. Treat the target ROAS as a floor to test against, and check it again whenever your margin or shipping costs change.

More on margin and ad math