Break-even ROAS calculator

Calculate the minimum ROAS required to cover advertising costs at a given margin.

Margin available for advertising

Enter the share of revenue left after product cost, fees, shipping, fulfilment and return handling, but before advertising and operating costs.

Result assumptions: Do not use product gross margin before transaction and logistics costs. Break-even ROAS = 1 / contribution margin before advertising.

2.5x

At a 40% contribution margin, ROAS below 2.5x does not cover advertising under these assumptions. Operating costs and tax are not included.

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