Advertising Break-Even ROAS & CPA
Find profitable advertising thresholds from order contribution margin
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How to use this tool · examples & limitations
Find profitable advertising thresholds from order contribution margin.
Getting a reliable result
Check the currency, period and rate convention before entering amounts. Change one assumption at a time to compare scenarios.
Worked example
If an order brings in 100 and costs 60 to fulfil, you have 40 left for advertising before making a loss. You need 2.5 in sales for each 1 spent on ads. Return on ad spend (ROAS) is sales divided by ad spending; cost per acquisition (CPA) is the advertising cost to win one order.
Limitations to check
Rounding, taxes, fees and lender conventions can change real outcomes. Verify estimates against the actual product terms.
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