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Glossary / Money metrics

Break-even ROAS.

Short answer

Break-even ROAS is the return on ad spend at which an order covers its own product, shipping, fees and returns, with nothing left over: average order value divided by contribution per order. Below it, every sale from ads loses money.

Also called: BE ROAS, breakeven ROAS

The formula

Contribution = AOV - COGS - shipping - AOV x fee% - AOV x return% - other
Break-even ROAS = AOV / contribution

A $90 order with $27 product cost, $8 shipping, $2 other costs, 3% payment fees and 5% returns keeps $90 - $37 - $7.20 = $45.80. Break-even ROAS is 90 / 45.80 = 1.97, and the most you can pay for that order (max CPA) is $45.80.

Why it matters

A ROAS of 2.0 means very different things for a 70% margin product and a 30% margin product. Without your own break-even line you cannot tell a winner from an ad that is quietly losing money on every sale. The common shortcut, 1 / gross margin, ignores shipping, fees and returns, so it sets the line too low.

How to improve it

Raise the line you can clear by raising AOV (bundles, thresholds for free shipping) or lowering variable cost per order. Then judge ads against it: scale what sits clearly above break-even ROAS, fix or cut what sits below it.

Break-even ROAS in Fovea

Fovea syncs Meta spend and purchase ROAS every night and shows it next to each creative you link, with a red-to-green heat on the leaderboard, so you can see which creatives sit above your break-even line.

See Winners →

Stats

Spend

$13,740

last 30d

Blended ROAS

2.31x

revenue / spend

Active winners

4

ROAS ≥ 1.5x

Spend on winners

71.4%

share of window spend

Creative leaderboard

Top ads this window

AdStage
ugc-maya-field40-giftProspecting - BroadWinner$4,2103.42x2.31%186.4K76
motion-diver42-freeshippingProspecting - BroadWinner$3,1802.64x1.88%152.9K44
ugc-sam-chrono39-wristGifting - Q4Winner$2,4601.71x1.42%121.3K22
studio-diver42-detailRetargeting - 30dTesting$1,8901.18x0.94%98.7K12
motion-straps-offerRetargeting - 30dUnderperforming$1,2400.62x0.51%88.2K4
studio-field40-flatlayProspecting - BroadPaused$7601.36x1.12%40.1K5

Questions, answered.

What is a good break-even ROAS?+

There is no good one, only yours. It falls as your margin per order rises, which is why the calculator asks for your costs instead of quoting an average.

Is break-even ROAS the same as 1 / gross margin?+

Only if shipping, payment fees and returns are zero. Once you count them, your real line is higher than the shortcut.

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Fovea tags every hook, angle and transcript on upload and keeps hook rate, hold rate and ROAS beside each linked creative.

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