Enter three numbers and find your breakeven ROAS, the most you can pay to acquire a customer before you're losing money, and a straight answer on where you stand today. No sign-up, nothing stored.
Rough figures are fine — drag the sliders or type. Basic uses gross margin as a stand-in for all variable costs.
Every ₹1 of ad spend has to bring back at least this much in sales just to break even — before you've made a single rupee of profit.
Pay more than this to acquire a customer and you lose money on the first order. This is your breakeven CAC.
Enter what you know — each field defaults to a sensible value. This models real contribution margin, not just gross margin.
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Break-even CAC is the most you can spend per customer without losing money. Target CAC is what leaves your desired 15% margin.
Revenue returned per ₹1 of ad spend needed to break even, and to hit your target margin. Based on revenue net of discounts and returns.
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Net revenue = selling price − discount. Variable cost = product + shipping + fulfilment + gateway & platform fees (fees charged on net revenue). Contribution margin = net revenue − variable cost. Returns are modelled as: the product is recovered (restockable) but shipping, fulfilment and fees on a returned order are lost and no revenue is booked — so effective contribution per acquired order = (1 − return rate) × contribution − return rate × (shipping + fulfilment + fees). Break-even CAC = effective contribution. Target CAC leaves your desired margin on revenue net of returns. ROAS = net revenue ÷ CAC. GST/taxes are treated as pass-through and excluded. These are per-order, first-purchase economics — repeat purchases (LTV) can justify a higher CAC; see the LTV:CAC tool.
Honest caveat: this is first-order economics — it assumes one purchase per customer. If people buy again, their lifetime value can justify a higher cost per customer. But that only counts if you can actually measure repeat rate and attribute it. If you can't yet, breakeven is your floor — spend above it on faith and you're funding losses you can't see.
Most "profitable" campaigns look very different once the tracking is fixed. A free foundation audit checks whether your CAC, ROAS, and conversions are being measured correctly — before you scale a number that might be wrong.
Request a free audit