E-commerce Glossary

Break-Even ROAS

Minimum ROAS needed to cover all costs with no profit or loss.

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.

Measure your e-commerce metrics automatically

Profit, LTV, cohorts, RFM and 50+ metrics calculated automatically for PrestaShop, WooCommerce and Shopify.

14-day free trial.