Break-Even ROAS is the threshold below which your campaigns lose money. Formula: BE-ROAS = 1 / Contribution Margin %. With a 40% contribution margin, the BE-ROAS is 2.5. Any ROAS above that is profitable; below is a loss. Calculating your BE-ROAS is essential for setting realistic campaign targets and avoiding scaling unprofitable campaigns.
Related terms
AOV (Average Order Value)Average amount spent per order in your store.See definition ARPU (Average Revenue Per User)Average revenue generated per user over a given period.See definition Blended CACAverage acquisition cost including all marketing channels.See definition Blended ROASOverall return on all advertising spend combined.See definition CAC (Customer Acquisition Cost)Total cost to acquire a new customer.See definition Churn RatePercentage of customers lost over a given period.See definition
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