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Break-even advertising ROAS calculator

Find the advertising return needed to cover supplied variable costs and fees.

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Your result

Contribution before ads35
Break-even ROAS2.86
Maximum ad cost per order35

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How to calculate

Break-even advertising ROASBreak-even advertising ROAS1InputsRevenue per order ·Variable cost perorder ·Revenue-based fees(%)2MethodContribution beforeads =revenue-cost-revenue*fees/100;Break-even ROAS =…3Result35
Break-even advertising ROASAt revenue 100, variable cost 60 and fees 5%, contribution is 35. Advertising breaks even at 100/35, about 2.857 times ROAS. Concept diagram; not to scale.Break-even advertising ROAS1InputsRevenue per order · Variablecost per order · Revenue-based…2MethodContribution before ads =revenue-cost-revenue*fees/100;…3Result35MyCalCute.com
At revenue 100, variable cost 60 and fees 5%, contribution is 35. Advertising breaks even at 100/35, about 2.857 times ROAS. Concept diagram; not to scale.

Find the advertising return needed to cover supplied variable costs and fees.

Contribution before ads = revenue-cost-revenue*fees/100
Break-even ROAS = revenue/(revenue-cost-revenue*fees/100)
Maximum ad cost per order = revenue-cost-revenue*fees/100

Worked example

  • Revenue per order: 100
  • Variable cost per order: 60
  • Revenue-based fees (%): 5
  • Contribution before ads: 35
  • Break-even ROAS: 2.86
  • Maximum ad cost per order: 35

Assumptions and limits

Excludes fixed overhead, tax, repeat purchases and unmodelled returns. Positive contribution is required; this is a break-even scenario, not a campaign forecast.

Results are rounded for display; calculations use unrounded values. Read our calculation methodology.

Understanding the result

Find the advertising return needed to cover supplied variable costs and fees. At revenue 100, variable cost 60 and fees 5%, contribution is 35. Advertising breaks even at 100/35, about 2.857 times ROAS.

When this tool is useful

At revenue 100, variable cost 60 and fees 5%, contribution is 35. Advertising breaks even at 100/35, about 2.857 times ROAS.

Understanding your inputs

InputExample
Revenue per order revenue100
Variable cost per order cost60
Revenue-based fees (%) fees5

Frequently asked questions

What does this estimate leave out?

Excludes fixed overhead, tax, repeat purchases and unmodelled returns. Positive contribution is required; this is a break-even scenario, not a campaign forecast.

How do I check the example?

Use the stated units and the formula below. Keep full precision until the final answer; change one input at a time to see its effect.

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