ScaleyWhat Is a Good ROAS?
Answered 8 October 2026 · Written and reviewed by Christopher Krassnig
A good ROAS is one above your break-even ROAS, which is 1 divided by your gross margin. With a 40% margin, break-even is 2.5, so a ROAS of 4 makes money and a ROAS of 2 loses it. Scaley Suite shows spend and ROAS in one dashboard. We build Scaley, so weigh that.
Why There Is No Single Good ROAS
You will see numbers like 4 or 400% quoted as a good ROAS. Treat them as a guess about somebody else's store. ROAS counts revenue, and revenue is not profit. A ROAS of 4 is great for a product with a 50% margin and a loss for one with a 20% margin.
So the honest answer starts with your margin. Amazon's own ad guide says the same about its version of the metric: there is no definitive good number, and to stay profitable your cost of sale has to be lower than your profit margin.
Break-Even ROAS by Margin
Break-even ROAS = 1 / gross margin. Use the margin left after product cost, shipping and payment fees. Here is the sum for common margins. This is arithmetic, not a benchmark.
| Gross margin | Break-even ROAS | As a percent |
|---|---|---|
| 20% | 5.0 | 500% |
| 25% | 4.0 | 400% |
| 30% | 3.33 | 333% |
| 40% | 2.5 | 250% |
| 50% | 2.0 | 200% |
| 60% | 1.67 | 167% |
Read your ROAS against your row. Above it, the ads make money before other costs. On it, they break even. Below it, you pay to sell. A good ROAS is above break-even with room for the profit you want to keep.
Is a 2.2, 3.8, 4 or 7 ROAS Good?
Flip the sum: the lowest margin a ROAS can carry is 1 divided by that ROAS.
A 2.2 ROAS breaks even at about a 45% margin. Good if your margin is higher, a loss if it is lower.
A 3.8 ROAS breaks even at about a 26% margin.
A 4 ROAS breaks even at a 25% margin.
A 7 ROAS breaks even at about a 14% margin. Good for almost any store, but check you are not starving growth: a very high ROAS can mean you are only buying the cheapest, surest sales.
Which ROAS Are You Reading?
Google Ads ROAS is conversion value divided by cost, and it only counts sales Google tracked from its own ads. Your store-wide blended ROAS divides all store revenue by all ad spend across every channel. They answer different questions.
Also check new versus returning customers. A ROAS built on repeat buyers who would have bought anyway looks better than it is. A lower ROAS on first-time buyers can still be the better business, because those customers buy again.
Where Scaley Fits
Scaley Suite shows spend, ROAS and new customers in one dashboard, and sorts every product by margin and speed of sale, so you can see which products sit below break-even. Each change it proposes waits for your yes. Scaley Media Buyer reads the live account, read-only, and answers when you ask.
Scaley only knows your margin if you connect Shopify or tell it. The break-even line starts with your own numbers.
Common Questions
Is a 4 ROAS good?
It is good if your gross margin is above 25%, because 1 divided by 4 is 25%. Below that margin, a 4 ROAS loses money.
Is a 2.2 ROAS good?
Only if your gross margin is above about 45%. Check 1 divided by 2.2 against your own margin.
What is a good ROAS for ecommerce?
One above your break-even ROAS. Work it out as 1 divided by your gross margin after product cost, shipping and fees.
What is a good ROAS for Google Ads?
The same test: above your break-even ROAS. Remember Google's ROAS only counts sales it tracked from its own ads.
Now There Is Somebody Qualified to Ask
The search terms report is open and the money already moved. Connect read-only in under five minutes and ask where it went. Not ready to plug the account in? The two-minute quiz scores you with no Google Ads login.
3-day free trial. Card required. Cancel anytime