Glossary · Ads
Break-even ROAS
The ROAS at which an ad’s orders leave exactly nothing: below it, every order the ads bring in loses money.
- Break-even ROAS1.93×example store
- Kept before ads51.7%of every sale
- A 1.80× campaignloseson every order
01 / How it is worked out
The formula
Formula
Sales ÷ contribution before ads (= 1 ÷ contribution margin)
Example
The example store keeps 51.7% of sales before ads, so its break-even ROAS is 1.93×: a campaign reporting 1.80× is losing money on every order.
02 / Why it matters
What it changes in a decision
A ROAS of 2× sounds like profit. If the products keep 40% of the price after goods, fees and VAT, the break-even is 2.5×, and 2× is a loss.
The line moves with the product mix: a campaign selling high-margin products can live at a lower ROAS than one selling low-margin ones.
03 / Go further
Where it is used
Break-even ROAS calculator
The ROAS below which an ad loses money on every order.
Open →Ads on margin
Every campaign judged on what its orders kept, not on what the platform claims.
Open →Next: Profit ROAS
What the ads’ orders kept after VAT, goods, shipping and fees, per euro of ads. Under 1× the ads cost more than they left.
Open →
See every one of these on your own store.
Profflow works them out from your orders, ads and costs, order by order — read-only, in about ten minutes.