A ROAS of 4 can still be a loss. Put in your numbers and know exactly what a sale is allowed to cost - before you praise anyone for a 4.2.
Revenue per order, in your currency.
Product, shipping, payment fees - everything that scales with each order. Not rent, not salaries.
Leave at 0 to see pure break-even.
Below 3.33 you lose money on every ad-driven order. Anyone reporting a lower ROAS as a win is reporting a loss.
The math: break-even ROAS = 1 divided by your contribution margin. A 30% margin means you need revenue of 3.33x your ad spend just to hit zero.
Why it matters: ROAS is the number everyone loves to show, because it looks biggest. It ignores your margin. This number is the difference between a report that sounds good and a business that makes money.
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