Break-Even ROAS Calculator
Enter your unit economics and see the exact ROAS you need to break even, the most you can pay to acquire a customer, and whether your current spend is actually profitable.
Your numbers
Three quick inputs. Adjust anything and the results update live.
Retention — optional
Results
Know your allowable CAC? The next question is whether your store converts the traffic you're paying for.
Book a growth auditBreak-even ROAS, explained
The ROAS your ad platform reports measures revenue against spend. Break-even ROAS measures profit. A store can post a healthy reported number and still lose money on every order, because reported ROAS ignores what each order actually costs to fulfill. Break-even ROAS is the point where advertising exactly pays for itself, with no profit and no loss. It is the inverse of your contribution margin: if 40% of each order is left after product, shipping, fulfillment, fees, discounts, and returns, your break-even ROAS is 1 ÷ 0.40 = 2.5x. Below it you lose money on every order you acquire; above it you make money.
The first-order ROAS trap
First-order break-even ROAS assumes a customer buys once and never comes back. For most DTC and CPG brands that is too harsh, because repeat purchases add contribution you already paid to acquire. Enter your 90-day repeat revenue and the calculator drops your break-even ROAS, because you can afford a higher acquisition cost when a customer is worth more than one order. The trap runs the other way too: a brand with no repeat purchase cannot hide a weak first-order margin behind a hoped-for LTV.
The math behind the numbers
Contribution per order is your AOV minus product cost, shipping, fulfillment, payment fees, discounts, and returns. Contribution margin is that figure divided by AOV. Break-even ROAS is AOV divided by contribution per order, and break-even CAC is the contribution itself, the most you can spend to acquire a customer and still break even on the first order. With repeat revenue entered, allowable CAC grows by the contribution on that repeat revenue, which lowers the ROAS you need.