Peak Break-even ROAS

How do I calculate my break-even ROAS?

Six short questions: business model, average order value, cost of goods, shipping and fulfillment, VAT and payment fees, returns. You'll then see break-even ROAS, target ROAS and maximum CAC. Values you don't enter stay marked as assumptions.

1. 01Open Peak Break-even ROAS and choose “Calculate first result”.
2. 02Answer the six questions. You can skip returns.
3. 03Choose your target profit, for example 10%.
4. 04In the calculator, replace the assumptions with your own values.

How do I calculate break-even ROAS per product?

Under “Products”, you add products from Peak Products or create new ones. Price and cost of goods come from Peak Products; whatever a product does differently, such as returns, shipping or discount, you enter only there. Everything else it inherits from the store model.

1. 01Open Peak Break-even ROAS → “Products”.
2. 02Under “Add product”, choose a product from Peak Products or create one (“Create and add”). If there are already products in the model, open this with “+ Product”.
3. 03Enter deviations that only affect this product.
4. 04Enter “Orders per month” so the product is placed correctly in the portfolio view.

How do I test a price change without changing my model?

Under “Scenarios”, you start with a template such as “Price +10%”, “Black Friday −20%” or “Free shipping”, or build one with the sliders. Peak shows break-even, target ROAS and max CAC compared with the current model. Your model only changes when you apply a scenario.

1. 01Open “Scenarios” and choose a template or move the sliders.
2. 02Save with “Save as scenario” and a name.
3. 03Compare under “Current model and scenario compared”.
4. 04Click “Apply scenario” if it should become your new model. The previous model stays in the history.

How do I restore an earlier state of my model?

“History” lists every change to the model with the inputs that shifted the target ROAS. Saves within ten minutes count as one change. With “Restore this state”, you make an old state current again.

1. 01Open “History”.
2. 02Find the change you want to go back to.
3. 03Click “Restore this state”.

How do I pass my result on to an agency or accounting?

Under “History” you'll find “Share & export”. There you copy the result as text, optionally together with all assumptions, or print it as a PDF. You download the product list under “Products” with “CSV”, and copy the matrix under “Matrix” with “Copy table”.

1. 01Open “History” → “Share & export”.
2. 02Choose “Copy result” or “Copy result + assumptions”.
3. 03For a PDF, use “Print / save as PDF”.

How do I calculate separately for different countries or for new and repeat customers?

In the “Matrix”, you create markets with their own VAT, shipping and fees, and separate customer types such as new and repeat customers. Each row inherits the store model and only changes what you enter differently there. You calculate foreign currencies with an exchange rate you enter yourself.

Why does my target ROAS differ from the ROAS in Meta or Google?

By default Peak calculates with revenue excluding VAT after discounts. Ad platforms often report gross revenue including VAT and credit themselves with purchases through their own attribution. In the calculator under “Targets & definition”, set the revenue basis to “Gross” when you compare with platform figures, and mark the channels as platform attribution. Platform ROAS is never the same as booked revenue.

Does Peak Break-even ROAS change the cost of goods in Peak Products?

Only if you explicitly want it to. A product is the same in Peak Products, in its calculation and here. If you deviate on cost of goods, you apply the value with “Apply cost of goods to Peak Products”; without that click, Peak Products stays unchanged.

How much more do I need to sell with a discount?

The “Discount simulator” under “Scenarios” shows what a discount does to break-even, target ROAS and max CAC, and how much orders would need to rise for the contribution before advertising to stay the same. It's calculated at the same return rate. Peak doesn't know whether more people will actually buy.

What do Critical, Break-even, Healthy, On target and Scale mean?

These are the profit zones of your current ROAS compared with your thresholds. Critical: every order through advertising costs money. Break-even: roughly no contribution after advertising. Healthy: positive, but below your target. On target: your target profit is reached. Scale: well above target. Without actuals, Peak shows “Actuals missing”.

1. 01Open the “Calculator” and enter revenue and ad spend under “Actuals”.
2. 02Under “Channels”, add the channels you advertise on and choose their attribution.
3. 03Read the zone and recommendation in the overview.

Which margin level does Peak calculate break-even against?

You choose it in the calculator under “Targets & definition”: gross profit, contribution margin I, contribution margin II or operating contribution. The default is contribution margin II, meaning after fees, shipping, fulfillment and return costs. The deeper the level, the higher the required ROAS.

Why does my target ROAS say “impossible”?

Your target profit is higher than what's left before advertising at all. In that case no ROAS can reach it. Peak shows the largest cost blocks; lower the target profit or improve price, cost of goods, discounts or returns.