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Factor in product cost, payment fees, shipping, and packaging — not just the sale price. Free, instant, no signup.
Defaults match PayFast's card rate (3.2% + R2) — check our PayFast Fee Calculator if you use a different method.
Below this ROAS, every sale loses money. Max ad spend per sale: R257,00.
Ad budget per sale at this target: R182,00.
Fulnex keeps your online stock, orders, and warehouse in sync — so ad-driven demand doesn't outrun what you actually have.
A 3× return on ad spend sounds healthy and can still be losing money. ROAS measures revenue against ad cost and ignores everything between the two — the cost of the product, the payment fee, the packaging, the delivery. Break-even ROAS is the number that actually decides whether a campaign should keep running.
Break-even ROAS is the point at which a campaign returns exactly what it costs, with nothing left over. Anything below it loses money on every additional sale, which means scaling the campaign scales the loss. Knowing that floor turns 'is this working' from a feeling into a comparison against a specific figure.
The lower your gross margin, the higher your break-even ROAS has to be. A product at 60% margin breaks even around 1.7×. The same product at 25% margin needs roughly 4× before it stops losing money. Two stores running identical campaigns at identical ROAS can be on opposite sides of profitable, purely because of what they sell.
On a R500 order a card fee of roughly R18 is real money out of the same margin the ad spend comes from. Leaving it out makes every campaign look better than it is, and the error compounds at exactly the moment you decide to scale.
The return on ad spend at which a campaign exactly covers its costs — the product, the payment fee, fulfilment and the ad spend itself. Below it you lose money on every sale; above it you make money.
Almost always thin gross margin. The less each sale contributes after costs, the more revenue each rand of ad spend has to produce before the campaign is worth running.
Include every cost that varies with the sale — product cost, payment fee, packaging and delivery. Fixed overheads that would exist regardless belong in a separate calculation.