Every product has a number below which ad spend is a donation. This finds yours, then finds the one you need to actually take profit home.
| Metric | Value |
|---|---|
| Contribution margin per unit | $36.75 |
| Contribution margin | 41.3% |
| Break-even ROAS | 2.42x |
| Target ROAS at 15% net margin | 3.80x |
| Break-even CPA | $36.75 |
Break-even ROAS is the point where the ad spend and the order cancel each other out. Below it, every extra order takes money off the table. Above it, the difference is yours minus overhead.
Target ROAS is stricter. It carries the net margin you actually want on top of the unit economics, so it is the number your campaigns should be judged against, not break-even.
Break-even CPA is the same truth stated in dollars. It is the most you can pay to acquire one order before that order stops paying for itself.
This model covers unit economics only. Overhead, salaries, agency fees and creative production sit on top, so treat the target as a floor rather than a ceiling.
It is unit economics, offer structure and targeting compounding in the wrong direction, and no new hook fixes that. We rebuild the paid acquisition around the number this calculator just gave you, so every campaign has a floor it has to clear. Book a call and we will hold your break-even up against what you are actually paying for an order.
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