What Is a Good ROAS? Benchmarks by Industry

A 'good' ROAS is one above your break-even, which depends on margin. We break down realistic blended and platform ROAS ranges by industry so you can set targets that protect profit.

There is no universal good ROAS

A ROAS of 3x is excellent for one brand and a loss for another. The number that matters is your break-even ROAS, which depends entirely on your margins — not an industry average.

Start with break-even

Break-even ROAS is 1 divided by your contribution margin. If 40% of revenue is gross profit, you break even at 2.5x. Anything above that is profit; anything below is subsidised growth you had better be choosing on purpose.

Blended vs platform ROAS

Platform-reported ROAS over-counts — every channel claims the same sale. Blended ROAS (total revenue divided by total ad spend) is the honest, business-level number. Use platform ROAS to steer campaigns; use blended ROAS to judge the program.

Set your target

Work back from margin to a blended target that funds growth without eroding profit, then let channel targets ladder up to it. Review it as margins and LTV change — a good ROAS is a moving number, not a badge.

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