Is your ad spend actually profitable?
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; your raw input values stay on your device.
Performance marketers · ~1–3 min
Needs: Order value, margin/costs, CAC
Your numbers
Rough figures are fine — drag the sliders or type. Basic uses gross margin as a stand-in for all variable costs.
Result
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Add what you currently pay to acquire a customer to see whether you're above or below breakeven.
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.
Full unit economics
Enter what you know — each field defaults to a sensible value. This models real contribution margin, not just gross margin.
Result
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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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Method & assumptions
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.
The numbers only mean something if your tracking is right
Most "profitable" campaigns look very different once the tracking is fixed. A Foundation Audit checks whether your CAC, ROAS, and conversions are being measured correctly — before you scale a number that might be wrong.
Discuss your growth project