Return on ad spend, against your break-even

A 2× return sounds like a win until you remember the product costs money to make. This puts your ROAS next to the return your margin actually needs.

Ad spend$Revenue the ads brought$Gross margin%Orders

ROAS

2.40×

Break-even ROAS

1.67×

Profit after ad spend

$220

Cost per order

$21

What this means

A 2.40× return clears your 1.67× break-even, so the campaign made $220 after costs.

How it works

ROAS = revenue ÷ ad spend. Break-even ROAS = 1 ÷ gross margin: at a 50% margin you need 2× just to stand still.

Profit after ad spend = revenue × margin − spend. It is the number that decides whether to keep going; ROAS alone cannot.