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Know your break-even ROAS

The one number that splits profit from loss on every order. Work it out from your real unit economics before you spend a dollar, then aim above it.

A "3x ROAS" tells you nothing on its own. If every sale leaves you 30 cents on the dollar, a 3x is barely breaking even and a 2x loses money on every order. Break-even ROAS is the single number that says whether your ads make money or burn it. Without it, you're guessing.

Break-even ROAS is the point where your ads stop losing money and start making it. It's just your price divided by what's left after the real cost of one sale:

Break-even ROAS = price ÷ (price − COGS − shipping − payment fees − pick/pack)

That's the same as 1 ÷ your contribution margin. AI can run the arithmetic and set your target the instant you hand it your unit economics; the calculator on this page does the same live, so use it to sanity-check by hand.

In this lesson

  1. Fastest path: one prompt, end to end
  2. Or do it in 5 steps
  3. Worked example (illustrative, use the calculator on this page for yours)

What you'll learn

  • List every per-unit cost
  • Get contribution profit
  • Compute break-even ROAS
  • Set a target above it
  • Recompute when a cost moves