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Breakeven ROAS and true margin

The ROAS Meta and Google report does not know what your product costs. This calculator crosses your price with your real cost to give you the margin each order leaves and the ROAS below which you are paying to sell.

Excluding tax — what you charge per order.

What the unit costs you, excluding shipping.

Per-order cost you absorb.

%

Percentage of the selling price.

Contribution margin

€32.50

What each order leaves before advertising.

Margin on price

54.2%

Breakeven ROAS

1.85×

Below this, every sale costs you money.

Maximum CAC

€32.50

The most you can pay for an order and still break even.

How this is calculated

FAQs

Frequently asked questions

Why is my breakeven ROAS higher than I expected?

Because the full selling price is the numerator but only the margin is the denominator. At a 50% margin you need a ROAS of 2 to break even; at 25%, you need 4. The thinner the margin, the more ROAS the same outcome demands.

Is this the same as a target ROAS in Meta or Google?

No. Platform targets are set on revenue, because the platform cannot see your product cost. This starts from margin, so it tells you whether the sale left money — not just whether it produced revenue.

Should I use average order value or a single product price?

Use average order value and average cost if you sell several lines together. A single product gives you that product’s breakeven, which is what you want when deciding whether to keep advertising it.

What about fixed costs?

Deliberately excluded. Breakeven ROAS answers "does this sale add or subtract", which is a campaign decision. Covering fixed costs is a different question, about volume.

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