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Ad costs and benchmarks · Guide

What is a good ROAS? Break-even and benchmarks

1 ÷ marginbreak-even ROAS formula (Shopify)
3.0–5.0xhealthy blended MER, Eightx 2026 via Shopify
12industries compared for Google and Meta

Short answer: a good ROAS is one above your break-even, and break-even ROAS is 1 divided by your gross profit margin. With a 40% margin you need at least 2.5x. Industry medians are only a guide: published figures range from about 1.0x to about 6.1x depending on the industry and platform.

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ROAS in one minute

ROAS (return on ad spend) is the sales your ads bring in divided by what you spent on them. Spend $1,000 and get $3,000 in sales, and your ROAS is 3.0x.

ROAS is revenue, not profit. A 3.0x ROAS can still lose money if your product, shipping and fees eat most of the sale.

Find your break-even ROAS first

Break-even ROAS is the point where your ads cover your variable costs. Shopify gives the formula as 1 divided by your gross profit margin. Variable costs include product cost, shipping, payment fees and pick-and-pack.

Break-even ROAS by gross margin

The return you need just to cover product and fulfilment costs

20% margin
5.00x
30% margin
3.33x
40% margin
2.50x
50% margin
2.00x
60% margin
1.67x

Source: Formula: break-even ROAS = 1 ÷ gross profit margin (Shopify). Values calculated by MindfulClicks.

View as table
ItemValue
20% margin5.00x
30% margin3.33x
40% margin2.50x
50% margin2.00x
60% margin1.67x

Example from Shopify: a $100 product with $60 of variable costs has a 40% margin, so the break-even ROAS is 2.5. Aim above that to cover overheads and leave profit. Our free wasted ad spend checker does the sum for you.

What the benchmarks say

These are medians. Half of advertisers are above and half below, so they tell you where you stand, not what is possible.

Median ROAS by industry: Google Ads vs Meta Ads

2025 medians, based on Varos data as reported by Landingi

Google AdsMeta Ads
Toys
6.07x
2.69x
Sports and fitness
4.35x
2.41x
Books
4.31x
0.98x
Baby
4.00x
4.39x
Fashion
4.07x
2.65x
Home and garden
3.90x
2.60x
Electronics
3.76x
2.95x
Beauty
3.57x
1.57x
Entertainment
3.52x
3.27x
Food and beverages
3.45x
1.67x
Education
2.58x
1.54x
Healthcare
2.24x
1.20x

Source: Landingi, citing Varos, 2025. Sample size is not stated, and another site shows different values for the same industries, so treat these as indicative.

View as table
ItemGoogle AdsMeta Ads
Toys6.07x2.69x
Sports and fitness4.35x2.41x
Books4.31x0.98x
Baby4.00x4.39x
Fashion4.07x2.65x
Home and garden3.90x2.60x
Electronics3.76x2.95x
Beauty3.57x1.57x
Entertainment3.52x3.27x
Food and beverages3.45x1.67x
Education2.58x1.54x
Healthcare2.24x1.20x

Same industry, different platform. Google search usually returns more than Meta in this data because people searching are closer to buying. Baby is the exception, where Meta was slightly higher (4.39 against 4.00).

ROAS, MER and POAS: which to use

MeasureWhat it isBest for
ROASRevenue attributed to ads ÷ ad spendJudging one campaign or channel
MERTotal revenue ÷ total marketing spendJudging the whole business
POASGross profit from ads ÷ ad spendSeeing real profit, since ROAS ignores product cost

Sources: Shopify on MER and Relevant Audience on POAS.

Shopify cites an Eightx 2026 benchmark study that puts a healthy blended MER at about 3.0x to 5.0x. Shopify advises using ROAS and MER together, because ROAS can look good while the business as a whole does not.

How to raise your ROAS

  1. Fix trackingIf sales are missing from your reports, your ROAS looks lower than it is and ad platforms cannot learn. See our GA4 guide.
  2. Improve the offer and pageA better conversion rate raises ROAS without spending more.
  3. Cut weak spendPause campaigns that stay below break-even after a fair test.
  4. Raise average order valueBundles and thresholds increase sales per click.
  5. Review weeklyCheck ROAS, MER and profit together.

Sources

Questions answered

What is a good ROAS for ecommerce?

One above your break-even. Break-even ROAS is 1 divided by gross margin, so a 40% margin needs 2.5x. Published medians for Google and Meta range from about 1.0x to about 6.1x depending on the industry and platform.

What is the difference between ROAS and MER?

ROAS divides the revenue attributed to ads by ad spend and is used for a campaign or channel. MER divides total revenue by total marketing spend and is used for the whole business. Shopify advises using both.

Is a 4x ROAS good?

It depends on your margin. At a 25% margin, 4x is exactly break-even. At a 50% margin it is twice break-even. Always compare with your own break-even.

What is POAS?

POAS is profit on ad spend. It replaces revenue with gross profit, so a value above 1 means your ads returned more gross profit than they cost.

Why is my Meta ROAS lower than Google?

In published data Meta ROAS is usually lower than Google search ROAS for most industries, because Meta reaches people who are not searching yet. The two platforms do different jobs, so judge them on your overall MER too.

Limon Ghosh

Limon Ghosh runs MindfulClicks from Sydney and manages paid ads, tracking and Claude AI automation for online stores and B2B companies in Australia and the USA.

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