Formula
ROAS by itself only measures revenue divided by ad spend. Break-even ROAS includes contribution margin before ads.
ROAS = revenue ÷ ad spend; break-even ROAS = revenue ÷ contribution margin before ads
Ads calculator
Calculate actual ROAS, break-even ROAS, net profit after ads, and maximum ad spend using revenue and full ecommerce cost structure.
ROAS by itself only measures revenue divided by ad spend. Break-even ROAS includes contribution margin before ads.
Low contribution margin can make even a visually strong ROAS unprofitable. Fees, shipping, returns, and product costs matter.