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How do you calculate the break-even point for ROAS?

Asked 3 years ago

How do I work out what ROAS I need to get to break even?

Declan Warner

Monday, March 21, 2022

Break-even ROAS formula: 1 / Average net profit margin

Firstly, enter the numbers accurately. You could slant the information if you surmise your input figures like COGs. This could have a knock-on effect. Your break-even ROAS can work out to be short of what it is, meaning your ROAS target is off-base.

Getting a ROAS will contrast your advertisement campaign, creating a profit or losing cash. Blending this with your break-even ROAS implies knowing when you can't support selling without losing money.





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