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What is a good ROAS?

Why the right ROAS target depends on your margins — not a generic benchmark.

Quick answerA good ROAS (return on ad spend) is the one that’s profitable for your business. Many companies target a ROAS of 3–5x, meaning $3–$5 in revenue per $1 spent, but lower-margin businesses need a higher ROAS to profit while higher-margin ones can succeed at a lower one. Set your target from your actual costs.

How to find your break-even ROAS

Divide 1 by your profit margin. If your margin is 40% (0.40), your break-even ROAS is 2.5x — below that you lose money on ad spend, above it you profit. Your target should sit comfortably above break-even so there’s room for overhead and growth.

ROAS vs. ROI

ROAS measures revenue per dollar of ad spend; ROI accounts for your broader costs to reflect true profit. Use ROAS to steer campaigns day to day and ROI for the bigger business picture. To estimate both from your own numbers, use our calculator.

Related questions

Is a higher ROAS always better?

Not necessarily — a very high ROAS can mean you’re under-spending and leaving profitable growth on the table.

What ROAS do ecommerce stores target?

Many target 3–5x, but the right number depends on product margins and shipping/return costs.

Keep reading

PPC ROI & ROAS calculator →Ecommerce PPC & Shopping →How to calculate a PPC budget →
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