Breakeven ROAS equals one divided by the contribution margin rate before marketing. A product with 40 percent margin after cost of goods, shipping, and payment fees breaks even at 2.5x; at 60 percent margin, 1.67x; at 25 percent margin, 4x. Any ROAS below breakeven loses money on the first order.
What moves it
Include every variable cost in the margin, and decide whether returns and repeat purchases belong in the calculation. Advertisers who accept below-breakeven ROAS on first purchase are betting on lifetime value and should know their payback period.
Run your own numbers with the Breakeven ROAS calculator.
Cite this page:
Agency Echelon. "How do you calculate breakeven ROAS?" Agency Echelon Reference, reviewed September 2026. https://agencyechelon.com/reference/questions/how-to-calculate-breakeven-roas/