How do you get to €21,000?

42,000 − 10,000 in ad spend − 7,400 in COGS − 2,400 in shipping − 1,200 in fees = 21,000. It's the same example as the homepage, not a real store's results.

Is 1.35× the true ROAS?

No. 1.35× is the breakeven for revenue / ad spend ROAS: 1 divided by the margin before ads (31,000 / 42,000). Below it, ad spend exceeds that margin and net profit turns negative. True ROAS is already at 2.1×. It signals a loss when it drops below 0.

It depends on the store's settings. If collected VAT is deducted from net profit, it comes out on top of the lines in this example. Here, it isn't deducted.

Why no acquisition cost?

NCPA is ad spend divided by new-customer orders. The example doesn't set that number of orders, so we don't make one up.

Net profit

€42,000 in sales.
€21,000 left over.

Same example as the homepage. Take out ad spend, COGS, shipping and fees. What's left, divided by ad spend, is a true ROAS of 2.1× — not the 4.2× in Ads Manager.

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No credit card requiredWhere the counted orders come from

P&L statement

Example · 30 days

Illustrative 30-day net profit example. Not a customer store.
Revenue	€42,000
Ad spend	− €10,000
COGS	− €7,400
Shipping	− €2,400
Payment & subscription fees	− €1,200
Net profit	+ €21,000

Meta ROAS

4.2×

revenue / ad spend

True ROAS

2.1×

net profit / ad spend

Illustrative figures, internally consistent. Not a customer result.

The subtraction

€42,000, line by line. Every deduction checks out.

The example's subtraction: what's left after each line, down to €21,000.
Line item	Amount	Remaining
Revenue	€42,000	€42,000
Ad spend	− €10,000	€32,000
COGS	− €7,400	€24,600
Shipping	− €2,400	€22,200
Payment & subscription fees	− €1,200	€21,000
Net profit		+ €21,000

Margin before ads = €31,000, i.e. 42,000 − 7,400 − 2,400 − 1,200. The €10,000 in ad spend isn't part of that €31,000: the ad spend is what gets compared to the 1.35× threshold.

The math

Five numbers you can check against the example.

Breakdown of the illustrative P&L: ROAS, margin and breakeven.
Metric	Formula	Result
Reported ROAS42,000 / 10,000Revenue divided by ad spend. It's the 4.2× from the homepage. Product costs aren't in it.	42,000 / 10,000	4.2×
True ROAS21,000 / 10,000Net profit divided by ad spend. This is the number to scale or cut on.	21,000 / 10,000	2.1×
Net margin21,000 / 42,000What's left, as a share of revenue.	21,000 / 42,000	50%
Margin before ads31,000 / 42,00042,000 − 7,400 − 2,400 − 1,200. Ad spend hasn't been taken out yet.	31,000 / 42,000	73.8%
Breakeven ROAS1 / (31,000 / 42,000)Threshold for revenue / ad spend ROAS. Below 1.35×, the example's net profit drops below zero. It is not a threshold on true ROAS.	1 / (31,000 / 42,000)	1.35×

Where you see it

The same profit, sliced three ways.

01
By campaign
Meta, TikTok or Google spend sits right next to the profit from the orders it brought in.
- Platform ROAS next to true ROAS
- A 4× platform ROAS can fall below breakeven
02
By product
COGS is the cost of the product sold, not a store-wide average.
- Line-item cost, not a catalog average
- A pricey best-seller weighs on the day
03
By day
The same math, every day: revenue, ad spend, COGS, shipping, fees, profit.
- Ad spend goes up
- Profit doesn't always follow

Frequently asked questions

The €21,000, the threshold, VAT.

Cut spend when ROAS drops below your breakeven.

Breakeven = 1 / margin before ads, applied to revenue divided by ad spend. 1.35× in this example, 2.5× at a 40% margin. 14-day free trial, no card required.

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No credit card requiredHow the purchase is sent to Meta, TikTok and Google

€42,000 in sales.€21,000 left over.

€42,000, line by line. Every deduction checks out.

Five numbers you can check against the example.

The same profit, sliced three ways.

By campaign

By product

By day

Frequently asked questions

Cut spend when ROAS drops below your breakeven.

€42,000 in sales.
€21,000 left over.