"What is a good ROAS?" is one of the most Googled questions in digital marketing — and one of the most misleading. There is no universal answer. Whether 4× is good or terrible depends entirely on your gross margin.
The only ROAS metric that matters: your breakeven
Before benchmarking your ROAS against industry averages, calculate your personal breakeven:
Breakeven ROAS = 1 ÷ Gross Margin %
A 4× ROAS at 25% gross margin = revenue of $4, gross profit of $1, after $1 ad spend = break-even. A 4× ROAS at 60% gross margin = revenue of $4, gross profit of $2.40, after $1 ad spend = 140% ROI.
Typical ROAS benchmarks by channel
| Channel | Typical range | Best-in-class |
|---|---|---|
| Google Search (branded) | 6–15× | 20×+ |
| Google Shopping | 3–8× | 10×+ |
| Meta / Facebook | 2–5× | 8×+ |
| TikTok Ads | 1.5–4× | 6×+ |
| Display / programmatic | 1–3× | 5×+ |
Branded search always delivers the highest ROAS because you're capturing existing demand at low cost. Non-branded prospecting to cold audiences will always have lower ROAS but is essential for growth.
ROAS benchmarks by industry
| Industry | Typical ROAS target |
|---|---|
| E-commerce (low margin) | 4–8× |
| E-commerce (high margin) | 3–5× |
| SaaS (LTV model) | 2–4× (on CPA basis) |
| Lead gen / B2B | 3–10× (on revenue attributed) |
| Subscription box | 3–6× |
The right way to set a ROAS target
- Calculate your gross margin (or get it from your accountant)
- Decide the profit margin you want to achieve from ads (e.g., 20%)
- Target ROAS = 1 ÷ (gross margin % − target profit %)
Example: 50% gross margin, 20% target profit → 1 ÷ 0.30 = 3.33× target ROAS.
Use the Ad ROAS Calculator to run the math for your specific margins and see your breakeven and target ROAS instantly.