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:
What "Good" ROAS Looks Like
| Industry | Average ROAS | Good ROAS | Excellent ROAS |
|---|---|---|---|
| DTC / E-commerce | 2.0x | 3.0x+ | 4.0x+ |
| SaaS / Lead Gen | 1.5x | 2.5x+ | 3.5x+ |
| Local Services | 3.0x | 5.0x+ | 8.0x+ |
Calculate Yours
Use our free ROAS Calculator to get your exact ROAS, break-even point, and performance grade.
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