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Break-even ROAS calculator

You've probably seen a 4x ROAS screenshot in your feed today, with nothing next to it about margin. So let's do the math, because ROAS isn't profit until you take the margin out. You don't need to sign up to see your number.

How the math works

Break-even ROAS is one divided by your margin. Say your margin is 25% after the product, the shipping and the fees. One divided by 0.25 is 4, so a 4x ROAS at a 25% margin keeps nothing. You got your money back, and that's before payroll and returns.

So the next time somebody shows you a ROAS, I encourage you to ask for the margin that goes with it.

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