Strategy3 min readMarch 12, 2026

How to Calculate ROAS (And What 'Good' Actually Looks Like)

Every brand knows they should track ROAS. But most are calculating it wrong — or comparing themselves to irrelevant benchmarks.

The Basic Formula

ROAS = Revenue from Ads / Ad Spend

If you spent $10,000 on ads and generated $30,000 in revenue, your ROAS is 3.0x.

Why Basic ROAS Is Misleading

A 3.0x ROAS sounds great until you factor in:

  • Cost of goods sold (COGS) — If your margins are 30%, you need a much higher ROAS to be profitable
  • Platform attribution — Meta and Google both claim credit for the same sale
  • Customer lifetime value — A 1.5x ROAS on first purchase might be excellent if customers reorder 4 times
  • What "Good" ROAS Looks Like

    IndustryAverage ROASGood ROASExcellent ROAS
    DTC / E-commerce2.0x3.0x+4.0x+
    SaaS / Lead Gen1.5x2.5x+3.5x+
    Local Services3.0x5.0x+8.0x+

    Calculate Yours

    Use our free ROAS Calculator to get your exact ROAS, break-even point, and performance grade.

    Ready to grow?

    Book a free strategy call and see how Innovara can scale your brand with paid ads, SEO, and GEO.

    Book a Free Call