Calculation · Break-even
Calculate your break-even ROAS.
Break-even ROAS is the point where revenue exactly covers the costs included in the calculation.
- Updated
- July 23, 2026
- Reading time
- 6 min
Short answer
Short answer
When contribution margin is expressed as a share of revenue, break-even ROAS can be estimated as 1 divided by that margin. The margin must already exclude advertising spend.
Key points
- The threshold depends on accurate costs.
- One average can hide product-level differences.
- Returns, discounts and taxes move break-even.
Build the threshold correctly
Start with expected net revenue and remove variable costs excluding ads. The remaining contribution funds acquisition.
Use separate thresholds when costs differ significantly by product or country.
- Use revenue after discounts and expected returns.
- Include relevant COGS, shipping, fees and taxes.
- Do not deduct ad spend twice.
Use break-even as a guardrail
Compare it with observed ROAS over a representative window and consider conversion delay.
Pair the threshold with volume, absolute profit and attribution coverage.
- Below: verify data and causes.
- Above: inspect absolute profit and volume.
- Recalculate after material price or cost changes.
Sources and method
External definitions link to primary sources. Statements about Scaliente reflect behavior verified in the product.
From theory to your numbers
Test the threshold with your assumptions
The Scaliente calculator exposes price, costs, taxes, returns and budget for a reviewable result.
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