ROAS, POAS and break-even
What a good ROAS is, how to work out each product's break-even and target, and why profit on ad spend (POAS) beats ROAS.
Break-even ROAS per product: why one target hides losses
Break-even ROAS = 1 ÷ contribution margin. See how one account-wide ROAS target funds loss-making products, with a three-product example.
How to calculate ROAS: formula and examples
Calculate ROAS as revenue from ads ÷ ad spend. See a worked example, what to count (VAT, returns, spend) and how to read it against break-even.
How to improve ROAS: fix products, not the ratio
Improving ROAS only counts when performance and profitability improve. Work per product against break-even, then measure profit directly with POAS.
POAS vs ROAS: profit on ad spend explained
POAS (profit on ad spend) vs ROAS: both formulas, three POAS variants on one order, a ROAS × margin grid and why break-even POAS is 1.0.
How to set a target ROAS from your margin
Set target ROAS as 1 ÷ (margin − profit kept). Includes a margin lookup table, what Google Ads documents about target level, and the target CPA equivalent.
What is a good ROAS? Ecommerce benchmarks 2026, by margin
A good ROAS is one above break-even. See if a 1.6, 2.2, 3.8, 4 or 7 ROAS is good at your margin, and what the 2026 benchmarks leave out.