Break-even ROAS calculator
Know the minimum ROAS your economics require.
Break-even ROAS = 1 ÷ contribution margin (before ad spend)
With a 40% contribution margin, break-even ROAS is 1 ÷ 0.40 = 2.5x. Below 2.5x, every order loses money.
Calculated result—
How to read the result
- Contribution margin here is after product, shipping, payment and packaging costs, but before ads.
- Your scaling target should sit above break-even to leave room for profit and returns.
- Recalculate whenever you change prices, discounts or shipping costs.
The real break-even point depends on the exact costs included in your margin definition. Your numbers tell you what you can afford; your rivals' ads tell you what the market is testing. See what Indian D2C brands are running.
Questions people ask
What is the simplified formula?
Break-even ROAS is 1 divided by contribution margin expressed as a decimal.
Is the result a forecast?
No. It is a transparent guardrail based on your input assumptions.