Formula
Break-even ROAS = retail price ÷ break-even CAC
What it means
ROAS is revenue divided by ad spend. At break-even, ad spend per order equals the break-even CAC, so break-even ROAS is the retail price divided by the break-even CAC. Ad platforms report ROAS, which makes this the number to check your campaigns against.
Low-margin products need a high break-even ROAS, which few campaigns reach consistently. A higher retail price or a bundle lowers it.
Worked example
For a supplier price of $8.00 sold at $20.00 (2.5x markup), with 2.9% + $0.30 payment fees and a 3% returns allowance: $20.00 ÷ $10.52 = 1.9. A campaign returning less than 1.9x loses money on each order.
Try your own numbers in the Break-Even ROAS Calculator