How the break-even ROAS calculator works
The calculator estimates contribution before ads from average order value minus product cost, shipping, packaging, fees, returns, and other variable costs. That contribution becomes the maximum cost to acquire an order before the order stops breaking even.
ROAS and CAC formulas
Break-even max CAC = contribution before ads. Break-even ROAS = average order value / break-even max CAC. Projected CPA = planned ad spend / expected conversions.