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What is Break-Even ROAS?

Finance

The ROAS (return on ad spend) at which your revenue exactly covers your ad spend plus COGS. Below this number you're losing money. Above it, you're profitable. Formula: Selling Price ÷ (Selling Price − COGS − Fees) = Break-Even ROAS.

Why it matters: Every kill/scale decision depends on comparing your actual ROAS to your break-even ROAS. Without knowing your number, you're flying blind.

Running ads for weeks without calculating this first. Multiple operators in real data discovered they'd been losing $50/sale only after tracking it properly. Calculate it before you spend a dollar on ads.

Learn this in practice → Cash Flow Basics

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Original content by First Sale Society — . Free, no paywall.