Metrics & KPIs

Breakeven ROAS

The ROAS level at which you neither make nor lose money after COGS, shipping, and fees. Every ROAS above this is profit.

Breakeven ROAS is calculated as 1 ÷ contribution margin %. If your product has a 25% contribution margin (after COGS, shipping, and payment fees), your breakeven ROAS is 1 / 0.25 = 4.0. Anything above 4.0x is profit; anything below is burning cash.

Most beginners scale stores with 15-20% contribution margins and aim for a 3x ROAS — which is actually a loss. Knowing your breakeven ROAS is the single most important number before you touch an ad budget.

Raise your breakeven threshold by improving margin (better supplier, higher retail price, reduced shipping cost) or by lifting AOV via bundles and upsells. Every dollar of margin lowers the ROAS you need to survive.

Related terms in Metrics & KPIs
AOV
Average Order Value — the average dollar amount a customer spends per transaction. Total revenue divided by number of orders.
AOV Lift
The increase in Average Order Value produced by a specific tactic — bundles, upsells, order bumps, quantity discounts. Every dollar of AOV lift compounds against ad spend.
ATC
Add to Cart — the tracked event when a visitor adds an item to their cart. ATC-to-purchase ratio is a powerful diagnostic of checkout friction.
Attach Rate
The percentage of orders that include a secondary item — typically an upsell, bundle, or order bump. Every 10% of attach rate is ~4-6% of AOV lift.
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