How to use Break-Even ROAS Calculator
- Enter product, tax, fulfillment, payment, and refund costs based on the same average order value metric.
- Enter your desired profit margin to calculate break-even and target profit CPA.
- Select ROAS based on the sales metric used in ad reports and review alongside actual attribution.
Try a concrete example
With the default assumptions, pre-ad contribution is 46.95; a 15% retained-revenue profit target leaves CPA of 32.70.
How to interpret results
Break-even CPA is retained net revenue minus non-ad costs and overhead. ROAS can use original customer payment or retained revenue after refunds and sales tax; the two bases are not interchangeable. If no positive ad budget remains, no finite usable ROAS is invented.
Frequently asked questions
Why are two ROAS values displayed?
Ad platforms may report gross order revenue, whereas business analytics focuses on net retained revenue after refunds and taxes. Because the numerators differ, the two ROAS metrics cannot be directly compared.
Is reaching break-even ROAS a guarantee of profit?
Applies only when input costs, refund rates, and attribution assumptions hold true; uncalculated taxes and cash flow still require verification.
Why is there no positive CPA?
Current costs or target profits have exhausted all retained revenue. The model cannot allocate a positive ad budget.