Question 1

What is break-even ROAS?

Accepted Answer

It's the return on ad spend where your ads pay for themselves and nothing more. Below it, every sale costs you money. Above it, you're making a profit after ad spend.

Question 2

How do I calculate break-even ROAS?

Accepted Answer

Divide your average order value by your profit per order before ad spend. If you sell a $100 product and keep $40 after product, shipping and fees, your break-even ROAS is 2.5x.

Question 3

How do I calculate CAC?

Accepted Answer

Divide what you spent to win customers by the number of new customers you won in the same period. Include ad spend, and include agency fees if you want your full cost.

Question 4

How much should I spend on ads?

Accepted Answer

Work backward from how many customers you want and what each one costs you. Most of our clients spend $1,500 to $10K a month on Meta.

Question 5

What's a good ROAS?

Accepted Answer

Any ROAS comfortably above your break-even number. A high-margin brand can grow at 2x while a low-margin brand needs 4x or more, so start from your own break-even ROAS, not an industry average.

Three ad numbers, one calculator.

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