What is break-even ROAS?

What this means

A campaign can show a strong-looking ROAS and still be unprofitable. Break-even ROAS connects ad performance to your actual margin. If your current ROAS is below break-even, every additional order may increase losses.

Formula

SellMira uses net revenue after discount, then subtracts variable costs to find contribution margin. If contribution margin is zero or negative, break-even ROAS is not available until the product has positive margin before ads.

Example

If net revenue is $45 and contribution margin is $19.92, break-even ROAS is about 2.26x. A campaign below 2.26x may lose money after the tracked costs. A campaign above it has room, but target profit and overhead still need review.

Common mistakes

• Using gross sales instead of net revenue after discounts.
• Ignoring shipping, packaging, payment fees, or refund impact.
• Treating platform ROAS as profit.
• Scaling campaigns before checking CPA room.

How to improve it

• Increase contribution margin by reviewing price, cost of goods, or bundles.
• Reduce high shipping, packaging, fee, or refund pressure where possible.
• Improve conversion rate so CPA can fall without reducing order quality.
• Review discount dependency before increasing ad budgets.