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Start with one typical order: selling price, non-ad order costs and advertising acquisition cost.
Your current business
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Product Break-even ROAS Calculator
Your ROAS looks good. Does the order keep any money?
Use selling price, the non-advertising cost of one order and acquisition cost. See your break-even ROAS, maximum CPA and contribution after ads, including losses.
Show me how this works — a quick guided example
Change one lever.
Change acquisition cost. Compare actual ROAS with the break-even line.
One changed scenario
See what moves.
Read the contribution or loss after advertising. Fixed overhead still needs funding.
A comparison you can investigate
Your numbers. Your next question.
The example is already working. Replace its figures with yours, from the same period.
This order contributes after advertising.
Compare the advertising ratio with what the order actually leaves behind. A negative contribution stays visible.
Break-even ROAS
2.50×Sales revenue required for every rand of advertising; before fixed overhead.
Actual ROAS
4.00×Selling price divided by acquisition cost.
Highest break-even acquisition cost
R 400What remains after making and delivering the order, before advertising.
Contribution after advertising
R 150Selling price less order cost and advertising acquisition cost; excludes fixed overhead, financing and tax.
Margin after advertising
15.0%Contribution after advertising divided by selling price.
The comparison uses your inputs and fixed assumptions. It is a planning example, not a prediction.
What is getting in the way?
Pick the problem you recognise. Start with a change you can actually measure.
- Check product, payment, packing and delivery costs before calling the order profitable. Compare paid acquisition cost with what remains.
- If acquisition cost is too high, investigate the product promise and checkout drop-off. Verify actual paid orders before scaling.
The maths behind your result
Break-even CPA = selling price − non-advertising cost per order. Break-even ROAS = selling price ÷ break-even CPA, only when CPA is positive.
Contribution after ads = selling price − order cost − acquisition cost. Negative results remain visible.
Use the same currency and tax basis. Include product, payment, packing, fulfilment, shipping subsidy and other order costs once. This excludes fixed overhead, financing and tax.
The calculator found the gap. Let’s look at your business.
Want help turning these numbers into an action plan? Show us the business and the obstacle. We’ll use your calculation as the starting point.