Find the exact ROAS your ads need just to break even, based on your real margins. Below it, every ad sale loses money. Free.
Your ads need a ROAS above 1.82x just to break even. Below that, every sale from ads loses money.
Your contribution margin is what is left of an order after product cost, fees and shipping. Break-even ROAS is the order value divided by that contribution. The thinner your margin, the higher the ROAS your ads must hit before they make any money.
It is the return on ad spend at which your ad revenue exactly covers the product cost plus the ad spend. Above it you profit; below it every sale from ads loses money.
Break-even ROAS = order value divided by contribution margin, where contribution margin is your order value minus product cost, fees and shipping. The thinner your margin, the higher the ROAS you need.
A good-looking ROAS can still sit below your break-even point once product cost, fees and shipping are included. Profixo tracks this per product and flags ad waste automatically.
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