Break-even ROAS
Break-even ROAS is the ROAS at which a campaign’s revenue covers its ad spend and variable costs with nothing left over. Below it, ads lose money; above it, they add profit.
Formula
Break-even ROAS = 1 ÷ Contribution margin % (before ad spend)
Example
Contribution margin before ads is 45% → break-even ROAS = 1 ÷ 0.45 = 2.22x. A campaign at 2.0x ROAS loses money.
In Analify
Analify has your product costs, shipping and returns, so the Agent can work out contribution margin by product or campaign — and the break-even ROAS that follows from it.
Questions
Is break-even ROAS the same for every product?
No. Each product’s margin is different, so each has its own break-even ROAS.
Should I target break-even ROAS?
Usually a little above it, to leave room for fixed costs and profit — unless you are deliberately buying new customers.
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