Article
Breakeven ROAS: Definition, Formula & Why It's Essential
Triple Whale Free Beginner
Walks through the exact formula a founder needs to compute their own break-even number before comparing it to anyone else's benchmark.
- Breakeven ROAS equals 1 divided by contribution margin, so a 40% margin brand breaks even at 2.5x.
- The calculation accounts for COGS, shipping, payment processing and fixed overhead, not just the media spend itself.
- Two brands can post the identical ROAS and be in completely different financial shape depending on where that number sits relative to their own breakeven.