Tool 02 · live
The number most brands get wrong. They divide by gross margin, get 1.5, and scale straight into a loss.
Gross margin isn't what pays for ads. Shipping, pick and pack, payment fees and returns all come out first. What's left is contribution margin — and that is the only number your break-even ROAS can be built on.
Averages are fine. Everything updates as you type, and nothing leaves your browser.
After discounts — what actually lands in your account.
Landed cost: manufacturing, packaging, duty, inbound freight.
Your net cost per order after whatever the customer paid toward it.
Card processing plus any platform transaction fee.
Refunded revenue you lose but still paid the costs on.
Profit left after ads. Set 0 to see pure break-even.
This is first-order economics. If a real share of customers buy again, your blended margin is higher and you can afford a lower ROAS on acquisition — but only once you can prove the repeat rate. Don't spend against a repeat rate you're hoping for.
Margin, offer, and cost per order are three of the things I go through when I tear a brand down. Three a week, free, published in public.
You're in. Next one lands this week.
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