Break-even ROAS Report
D2C unit-economics model · Generated 18 October 2026
| Average order value | ₹1,450 |
|---|---|
| Product cost | 32.0% |
| Shipping & fulfilment | ₹95 |
| Gateway / COD fee | 2.2% |
| Marketplace commission | 0.0% |
| RTO / return rate | 18.0% |
| Target net margin | 15.0% |
| Current ROAS | 2.40× |
Break-even ROAS calculator
Are your ads actually making money? Move a slider and watch the answer change. Every number here comes from your own cost sheet, not a benchmark someone quoted on LinkedIn.
Your numbers
Example numbers: replace with your ownDrag to see what each one is worth.
Product & returns
Landed cost as a share of order value.
Usually the cheapest number on this page to improve.
Delivery & targets
Cost breakdown per attempted order
| Line | Per order | % of revenue |
|---|---|---|
| Revenue after returns | ₹1,189 | 100.0% |
| Product, fees & shipping | −₹519 | 43.6% |
| Contribution (break-even CAC) | ₹670 | 56.4% |
| Acquisition at 2.40× | −₹495 | 41.7% |
| Profit per order | ₹175 | 14.7% |
You're past break-even and 97% of the way to your 15% margin target. Another 0.02× of ROAS gets you there.
Every ROAS, and what it pays you
Tap, drag or hover anywhere on the curve to read the profit at that ROAS.
Three moves, and what each is worth
Cut RTO from 18% to 14%: a prepaid nudge at checkout usually does it.
Lift average order value 10% with a bundle or a free-shipping threshold.
The ROAS improvement you'd need to hit 15% net margin without touching costs.
Estimates from your inputs, not a forecast.
Everything is per attempted order. Revenue is what survives returns; shipping is paid on every attempt with the return leg added on the ones that come back. Contribution is what's left to buy the customer, which is exactly your break-even CAC.
You have room to push
Break-even sits at 1.77×, you're at 2.40×, and your 15% margin target needs 2.42×. Every point off RTO is worth about ₹10 an order, the cheapest rupee on this page.
Questions this calculator answers
How do you calculate break-even ROAS?
Break-even ROAS is revenue divided by contribution, worked out per attempted order. Take AOV, subtract the value lost to returns, then subtract COGS, shipping on both legs for returned orders, payment gateway fees and any marketplace commission. What remains is contribution: the most you can spend acquiring that order.
What is a good contribution margin for D2C?
Above 45% of delivered revenue gives comfortable room to buy customers. Between 28% and 45% is workable but constrains how hard you can scale. Below 28% means most acquisition channels will be unprofitable regardless of how well the ads are run.
Why does RTO matter so much for break-even ROAS?
A returned order earns nothing but still pays shipping on both legs plus packaging and handling. At a 25% RTO rate you lose a quarter of your revenue while paying roughly 125% of your forward shipping cost, which can move break-even ROAS by more than a full turn.
How the break-even ROAS calculator works
Break-even ROAS is the return on ad spend at which an order pays for its own advertising and nothing more. Monday Marketing Company works it out from contribution, the money an order leaves behind before ads, not from the ROAS an ad platform reports.
The formula
Contribution before ads = order value − product cost − packaging − shipping − payment fees − returns allowance Break-even ROAS = 1 ÷ (contribution before ads ÷ order value) Break-even CAC = contribution before ads
Worked example
Illustrative numbers for one ₹1,000 order, not a benchmark.
| Order value (before tax) | ₹1,000 |
|---|---|
| Product cost | −₹300 |
| Packaging | −₹40 |
| Shipping | −₹90 |
| Payment fees | −₹20 |
| Returns allowance | −₹50 |
| Contribution before ads | ₹500 (50%) |
Break-even ROAS is 1 ÷ 0.5 = 2.0, and break-even CAC is ₹500. A campaign at ROAS 3.0 spends about ₹333 to win the order and leaves about ₹167. A campaign at ROAS 1.8 spends about ₹556 and loses about ₹56, even though the dashboard looks healthy.
How to read the result
Treat break-even ROAS as a floor, not a target. A campaign below it needs a fix or a pause, unless it brings customers who reorder. A campaign above it leaves margin, and the gap between the two is what ads add to profit. Compare it with the ROAS your platform reports on the same tax basis, and read blended results across channels, because each platform counts its own conversions.
Returns move the answer more than most people expect. A returned order earns nothing but still pays shipping, packaging and handling, so keep the returns allowance as its own line.
Use the same tax basis for the ROAS you read and the margin you calculate.
Read the guide: contribution margin and the ROAS you need to break even Unit economics calculator D2C marketing glossary
Next step
Know your break-even ROAS. Then build to beat it.
On a call, with a senior strategist. We check your break-even against your live accounts and plan the first 30 days.
