The method
Break-even is the floor. Target is the plan.
Break-even ROAS spends the full contribution margin on acquisition and retains no profit. A target ROAS reserves the profit you need first, then treats the remaining contribution as the maximum acquisition cost.
| Output | Formula |
|---|---|
| Target CPA | Contribution per order - retained profit |
| Target ROAS | Net order revenue / target CPA |
| Target ACoS | Target CPA / net order revenue |
Example
An $80 order with $45.60 contribution before ads and an $8 retained-profit goal can spend $37.60 to acquire the order. That means a 2.13x target ROAS, 213% in Google Ads format, or 47.0% target ACoS.
A higher target can restrict traffic and scale. This tool calculates the economic requirement; it does not promise the platform can achieve it.
Build a target from your profit margin