What Is a Good ROAS?
A good ROAS depends on your industry, platform, and profit margin. See real benchmarks — and the one number that matters more than any of them.
What is a good ROAS? The short answer: 2–4x is generally considered "good" across most industries. But that number is useless without context. A 2.0 return is excellent if your profit margin is 60% — and terrible if your margin is 30%. This page breaks down what that looks like by industry (e-commerce, SaaS, local services), by platform (Google Ads, Meta, TikTok, Amazon), and most importantly, by your own profit margin — because the only "good ROAS" that matters is the one that makes you money.
The Short Answer: What Is a Good ROAS?
Generally, a ROAS of 2–4x is considered good, and 4x+ is strong. But 1.5x can be great business if your margin is high, and 5.0x can still lose you money if your margin is thin. The only benchmark that actually applies to your business is your own break-even ROAS.
Good ROAS = Greater Than Your Break-Even ROAS
Calculate your break-even ROASGood ROAS by Industry
E-Commerce
Average ROAS: 2.0–4.0x. Excellent: 4.0–6.0x. The range is wide because profit margins vary so much by category — a 50%-margin apparel brand and a 20%-margin electronics reseller need very different ROAS to be profitable, before even accounting for average order value and repeat purchase rate.
SaaS
Average ROAS: 1.5–3.0x. SaaS ROAS tends to run lower because the payback period is longer and free trials add cost before any revenue shows up. Most SaaS businesses shouldn't optimize for ROAS at all — LTV:CAC is the metric that actually matters; ROAS is just a snapshot.
Local Services
Average ROAS: 3.0–8.0x. Local services (plumbers, lawyers, clinics) tend to run high ROAS because of high transaction values and precise geographic targeting. A plumber generating one $500 job from $50 in ad spend has a ROAS of 10.0.
Mobile Apps
Average ROAS: 1.5–3.0x, similar to SaaS. The key difference is timeframe — app ROAS is usually measured at D7 or D30, and the calculation depends heavily on whether the app monetizes through in-app purchases (IAP) or ads (IAA).
Good ROAS by Platform
Google Ads
Search campaigns average 2–4x, thanks to strong purchase intent. Shopping campaigns often run higher, 3–6x, since the product itself is the ad. Display campaigns are the weakest at 1–2x. Target ROAS (tROAS) Smart Bidding automatically adjusts bids toward the number you set.
Meta Ads (Facebook & Instagram)
Meta averages 1.5–3.5x, with e-commerce DPA campaigns often hitting 2–5x and lead-gen campaigns closer to 1–2x. Meta's default 7-day click attribution window tends to inflate ROAS — compare it against your actual revenue data before trusting it.
TikTok Ads
TikTok averages 1–3x, the widest swing of any platform, since it captures impulse discovery as much as search intent. Spark Ads (boosted organic posts) typically outperform standard in-feed ads for the same product.
Amazon Ads
Amazon measures ACOS instead of ROAS — a 15–25% ACOS (roughly a 4–6.7x ROAS) is considered good. Sponsored Products usually runs 15–20% ACOS, Sponsored Brands 20–30%. TACOS (Total ACOS, including organic sales) gives the more complete picture.
Why "Good" Depends on Your Profit Margin
One number matters more than any benchmark on this page: your break-even ROAS, which is 1 ÷ your profit margin. The same 2.0 ROAS that breaks even at a 50% margin loses 60% of your ad spend at a 20% margin — a benchmark that ignores margin is just a guess.
| Profit Margin | Break-Even ROAS | At ROAS 2.0 | At ROAS 5.0 |
|---|---|---|---|
| 50% | 2.00x | Break-even | +150% |
| 40% | 2.50x | −20% | +100% |
| 30% | 3.33x | −40% | +50% |
| 20% | 5.00x | −60% | Break-even |
| 15% | 6.67x | −70% | −25% |
Is a 2.0 ROAS Ever Good?
A 1.5–2.0 ROAS is often fine while you're still gathering data and testing creative — you're paying for information, not just sales.
Once a campaign is out of the learning phase, 3–4x is a reasonable bar to hold it to.
A 1–1.5 ROAS can still be worth running if it's driving brand awareness that shows up later as direct and organic traffic — spillover that never gets credited to the campaign that caused it.
ROAS often spikes because CPCs spike too — a good holiday ROAS isn't a fair benchmark for the rest of the year.
How to Improve a Low ROAS
Fix Your Targeting
Cut spend on audiences, locations, and dayparts that aren't converting, and exclude existing customers from acquisition campaigns unless your repurchase cycle is short.
Fix Your Creative
Creative fatigue is the single most common cause of a declining ROAS. Refresh cadence varies by platform: TikTok creative tends to wear out in 3–7 days, Meta in 7–14, and Google in 14–30.
Fix Your Landing Page
A low ROAS is sometimes a landing page problem, not an ad problem — page speed, above-the-fold clarity, and trust signals all move conversion rate, which moves ROAS just as much as the ad itself.
Fix Your Offer
Raising price, bundling, or adding a subscription option increases your margin — and since break-even ROAS is 1 ÷ margin, the same ROAS becomes more profitable without changing the ads at all.
Fix Your Attribution
Meta's 7-day click window and other platform-reported numbers tend to overstate ROAS. Media mix modeling, incrementality tests, and third-party attribution all give a more honest number to optimize against.
Frequently Asked Questions
A good ROAS for e-commerce is typically 2–4x, with 4–6x considered excellent. The exact benchmark depends on your profit margin — a store with 50% margins can be profitable at 2.0 ROAS, while a store with 20% margins needs at least 5.0 ROAS to break even.
A good ROAS for Facebook (Meta) ads is generally 1.5–3.5x. E-commerce DPA campaigns often achieve 2–5x, while lead generation campaigns typically see 1–2x. Meta's 7-day click attribution can inflate ROAS — compare it against your actual revenue data for accuracy.
A ROAS of 1.5 can be good or bad depending on your profit margin and stage. If your margin is 60%+, 1.5x is profitable. For a new campaign in the learning phase, 1.5x is acceptable. But for a mature e-commerce business with 30% margins, 1.5x means you're losing money on every sale.
ROAS = Ad Revenue ÷ Ad Spend (ads only). ROI = (Revenue − Total Costs) ÷ Total Costs × 100% (includes product, shipping, storage, labor). A 5.0 ROAS can look great while your true ROI is negative if your product costs are high.
ROAS vs ROI, explainedBreak-even ROAS = 1 ÷ Profit Margin. With a 40% margin, your break-even is 2.5x; with a 25% margin, 4.0x. Any ROAS below your break-even means you're losing money on every sale.
Open the break-even ROAS calculatorROAS drops typically come from four sources: creative fatigue (your ads stopped resonating), audience saturation (you exhausted your target pool), landing page issues (lower conversion rate), or seasonal and competitive shifts (more advertisers bidding). Check each factor systematically.
On Amazon, ROAS is measured by ACOS (Advertising Cost of Sale). A good ACOS is 15–25%, which equals a ROAS of 4–6.7x. Sponsored Products typically achieves 15–20% ACOS, while Sponsored Brands sees 20–30%. Also track TACOS (Total ACOS, including organic sales) for a complete picture.