What is a good ROAS? It depends entirely on your gross margin
A 3x ROAS can be excellent or catastrophic. The only way to know if your ROAS is good is to compare it against your minimum profitable ROAS — which is determined by your gross margin.
Find my minimum ROASMinimum profitable ROAS by margin
| Gross margin | Break-even ROAS | Good ROAS (+30% ROI) |
|---|---|---|
| 20% | 5.0x | 6.5x |
| 25% | 4.0x | 5.2x |
| 30% | 3.33x | 4.3x |
| 40% | 2.5x | 3.25x |
| 50% | 2.0x | 2.6x |
| 60% | 1.67x | 2.2x |
ROAS benchmarks by platform
These are typical ROAS ranges as reported by platforms for ecommerce — actual incremental ROAS is typically 20-40% lower:
- →Google Shopping / PMAX: 4–8x (high intent, most reliable attribution)
- →Meta Ads: 2–5x (social discovery, wide attribution windows)
- →TikTok Ads: 1.5–4x (impulse discovery, younger demographic)
- →Amazon Ads: 3–6x (high purchase intent, ACoS-based)
- →Pinterest Ads: 2–4x (long purchase cycles, lifestyle)