Estimate the minimum return on ad spend your order economics can support before advertising consumes all contribution profit.
Break-even ROAS is the minimum ratio of attributed revenue to ad spend at which the modeled order contribution reaches zero. A lower ROAS means advertising costs are consuming more than the contribution available from each order.
Contribution before ads is your order value minus product cost, fulfillment, payment/platform fees and other variable costs. Fixed overhead and attribution uncertainty are not included automatically.
Break-even tells you the theoretical floor. The target ROAS output keeps the profit margin you enter after advertising, which is usually the more useful operating target.
Planning estimate only. Returns, refunds, taxes, fixed overhead, blended acquisition, repeat purchase behavior and attribution error can materially change real profitability.