What is break-even ROAS?

The return on ad spend at which an order exactly pays for its ads. Below it, each sale loses money; above it, you make a profit.

Why do returns matter?

A returned order usually brings no revenue but the shipping and payment costs stay. That raises the ROAS you need.

Price after discount divided by the cost per purchase – the same way Meta and TikTok report ROAS.

Returns, payment fees and discounts eat the margin your ads have to pay for. Put in your real numbers.

Selling price

€

Product cost (COGS)

€

Shipping & packaging

€

Payment fee

+ per order

€

Return rate

Discount

Target margin

Ad spend

€

Break-even ROAS

1.91×

below this, every sale loses money

Break-even CPA

€20.90

max cost per purchase

Contribution per order

€20.90

52.4% of the price, before ads

ROAS for 15% margin

2.67×

CPA ≤ €14.92

Net revenue per order

€36.71

after 8% returns

Orders to cover the ad spend

–

at your contribution per order

How it’s calculated

Net revenue = price after discount × (1 − return rate)
Costs = product cost + shipping + payment fee (€1.41) – costs stay on returned orders
Contribution = net revenue − costs = your break-even CPA
Break-even ROAS = price after discount ÷ contribution (the way ad platforms report ROAS)

What is break-even ROAS?: The return on ad spend at which an order exactly pays for its ads. Below it, each sale loses money; above it, you make a profit.
Why do returns matter?: A returned order usually brings no revenue but the shipping and payment costs stay. That raises the ROAS you need.
Which ROAS does the calculator use?: Price after discount divided by the cost per purchase – the same way Meta and TikTok report ROAS.

Make five hook variants of one ad and find the one that pays.

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