MarginKit
marketplace seller
Free tool

Break-even ROAS Calculator for E-commerce

Understand your paid-traffic limits before scaling spend. This tool defines the CAC and ROAS thresholds you cannot exceed.

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Input order economics before ads

Find CAC and ROAS break-even limits for paid traffic.

Results

Evaluate campaign viability using break-even CAC and ROAS guardrails.

Break-even ROAS

2.5

Break-even CAC

$22

Gross profit before ads

$22

Interpretation

Ad spend range looks healthy

Break-even thresholds appear workable for controlled scaling.

Worked example

Worked example

Ad economics baseline:

Selling price: $55
Product + shipping + variable costs: $33
Break-even CAC: $22
Break-even ROAS: 2.5

How to use

Interpret your result correctly

Use these quick rules to keep pricing and inventory decisions grounded.

  • Input real selling price and variable costs only.
  • Review break-even CAC before launching campaigns.
  • Keep your target ROAS above break-even for healthy contribution margin.

Common mistakes

Avoid costly calculation errors

These mistakes usually create hidden margin risk or stock friction.

  • Using blended order value instead of SKU-level value.
  • Ignoring packaging and transaction fees.
  • Scaling campaigns without recalculating after discounts.

FAQ

Frequently asked questions

Short answers for common edge cases and interpretation questions.

Related

Related tools

Use these next to compare scenarios and validate decisions from multiple angles.

Ready for scenario comparison and workflow automation

Pro

Keep campaign and channel economics consistent across SKUs

  • - Save pricing scenarios
  • - Compare discount outcomes
  • - Track margin shifts
  • - Export calculator summaries