QKitBoxROAS & break-even calculator
A campaign can look profitable in ROAS and still lose money — the break-even line depends on your margin, not your feelings.
| ROAS | – |
|---|---|
| CPA (cost per order) | – |
| Break-even ROAS for your margin | – |
| Ad profit after cost of goods | – |
How break-even ROAS works
- Break-even ROAS = 1 ÷ profit margin. A 35% margin breaks even at 2.86× — anything above that is ad profit, below is a loss.
- Use margin after product cost, platform fees and shipping — the Fee & Profit Calculator gives you that number.
How to use — step by step
A campaign can hit a respectable ROAS and still be losing money — the verdict depends on your margin, not the multiple. This tool draws the line.
- Enter the ad spend for the period.
- Enter the revenue attributed to those ads (the platform's conversion value, or your own tracking number).
- Enter the number of conversions — orders, leads, signups — for the CPA line.
- Enter your true profit margin: after product cost, platform fees and shipping. The Fee & Profit Calculator produces this number if you don't have it.
- Read ROAS, CPA, the break-even ROAS for your margin, and the actual money left after paying for goods.
- Compare: above break-even means the spend is paying for itself and then some; below means every conversion is subsidized.
How it works
ROAS is revenue ÷ spend — how many dollars of revenue each advertising dollar brought. Break-even ROAS is 1 ÷ profit margin: at a 35% margin you need 2.86× just to cover costs, because out of every revenue dollar only 35 cents exist to pay for the advertising that produced it.
The profit line converts attribution into cash: revenue × margin − spend. A 3.00× ROAS on a 35% margin is 1,500 × 0.35 − 500 = +25 — technically profitable, and dramatically less impressive than the multiple suggested. A 3.00× ROAS on a 20% margin is a loss.
Caveats worth respecting: platform-attributed revenue overlaps across campaigns, so the sum of campaign ROAS is rarely the account truth; and margin should be the marginal margin — if discounted items or free shipping rode along with ad sales, use the margin those sales actually carried.
When comparing campaigns, rank by profit line, not ROAS: a 2.2× campaign on 50% margin beats a 3.1× campaign on 20% margin in actual cash. And when budget is finite, the question is marginal ROAS — what the next $100 does once the easy conversions are bought — which is why holding everything constant and moving spend in 10–20% steps tells you more than any single period's average.
Frequently asked questions
What margin should I enter?
The one those ad-driven sales actually carried: price minus product cost, platform fees, shipping — as a share of price. A blended store margin overstates ad profitability if ad items were discounted.
Is higher ROAS always better?
Up to break-even yes; beyond that, chasing maximum ROAS can mean under-spending on profitable growth. Compare incremental ROAS on additional budget instead.
Why does CPA matter alongside ROAS?
CPA (spend ÷ conversions) is the number you can act on per order — set bids, judge bundles, and compare against your average order margin directly.
Can I use lifetime value instead of single-order margin?
Yes for subscription-style businesses, but be honest about payback time: LTV-based break-evens mean spending cash now for revenue later.
Do view-through conversions count?
Carefully. They're real influence but weaker than clicks; if your platform blends them in, note it in the report (or in your own tracking) before declaring victory.
My margins were lower during the sale period. Which do I enter?
The margin the ad-driven sales actually carried — discounted. Mixing promo-period revenue with full-price margins overstates ROAS.
Platforms offer Target-ROAS bidding. Should break-even be my target?
Set the bidding target above break-even — at exactly break-even you're working for free; the gap is your fee for the risk you take.