Break-even ROAS
Margin and fulfillment costs → minimum ad ROAS
Input
Break-even ROAS
Target ROAS (+25% profit): 3,57
2,86
- Effective margin
- 35%
- Target ROAS (+25% profit)
- 3,57
BE ROAS = 1 / margin. At 40% margin, a 2.5 ROAS only breaks even. Target is higher by your required profit. Don't confuse with ROI: ROAS is on turnover.