<b>Your breakeven ROAS is usually 30% higher than you think</b>

<b>Your breakeven ROAS is usually 30% higher than you think</b>
Across 35 DTC P&Ls reviewed, 90d. Breakeven ROAS = 1 / gross margin.
— 40% margin product: breakeven ROAS 2.5x
— Add 6% payment+shipping: real breakeven 2.9x
— Add 15% returns: 3.4x
— Hit your 'profitable' 3.0x target at these costs: you lost money
Most target ROAS is set off list price, not contribution margin after refunds and fees.
Read: rebuild target ROAS from net contribution margin, not gross. The 0.4x you ignored is your whole profit line.