Break-even ROAS calculator, with your commission ceiling
Your gross margin decides the return every paid channel has to clear. Add a discount to see how it raises the bar and lowers what you can pay affiliates.
Price minus cost of goods, as a share of the price.
Off the price, on the orders the channel brings.
Example numbers. Replace them with yours.
How it's worked out
- An order breaks even when its gross profit covers what you paid to get it. If $40 of every $100 is gross profit, every $1 of ad spend needs $2.50 of revenue: break-even ROAS is 1 divided by your margin.
- Affiliate commission is the same cost, written as a share of the order. The highest rate you can pay before the order loses money is the margin left after any discount, divided by what the shopper paid.
- A $100 item that costs $60, sold at $20 off, takes $80 and leaves $20 of profit. A quarter of what the shopper paid is the ceiling on commission, and break-even ROAS is 4.
What Benson does
Attribution integrity flags orders where an extension's affiliate click landed after the shopper arrived from someone else, so you can see commission you may not owe.
Questions
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