There is no universal answer, and that is the point. A good ROAS is one comfortably above your break-even, which is 1 ÷ your margin rate. At a 50% margin, break-even is 2× and a good campaign is around 3× or more. At a 25% margin, break-even is 4× and a 3× campaign is losing money.

How do I calculate break-even ROAS?

Divide 1 by your margin rate. A 40% margin is 1 ÷ 0.40 = 2.5×, so every euro of ad spend must bring back 2.50 € of revenue before the campaign contributes anything.

Should margin include shipping and payment fees?

Yes, if you want the break-even figure to be true. Use your contribution margin: selling price minus product cost, shipping, payment fees and anything else that scales with each order. Leaving them out flatters the number by exactly the amount they cost you.

Only at a margin of 50% or better. At 50% it is exactly break-even, so 2× means the campaign paid for itself and nothing more. Below a 50% margin, 2× is a loss.

ROAS calculator, against your break-even

Free, no account · runs in your browser · last checked 22 September 2026

ROAS is revenue divided by ad spend, but that number alone cannot tell you whether a campaign makes money. What decides it is your break-even ROAS, which is 1 divided by your margin rate: at a 50% margin you break even at 2×, at a 25% margin you need 4×. A 3× ROAS is a good campaign for one seller and a losing one for the other.

ROAS = revenue ÷ ad spend · Break-even ROAS = 1 ÷ margin rate

Revenue from the campaign€Ad spend€Contribution margin%

Your ROAS

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Break-even ROAS

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1 ÷ your margin

Contribution after ads

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Enter your margin for a verdict

Nothing is sent anywhere: the calculation runs in your browser. Use your contribution margin — selling price minus product cost, shipping and payment fees — not your gross margin, or the break-even figure flatters you by exactly what you left out.

Why a universal "good ROAS" does not exist

Almost every ROAS calculator stops at revenue ÷ spend and then tells you that 2× is good. That advice is actively harmful to a low-margin seller: at a 25% margin, 2× means you took in two euros for every euro of ads and still lost money once the product cost is paid.

Break-even ROAS is the only figure that makes the ratio mean anything, and it is a single division: 1 ÷ your margin rate. A 30% margin breaks even at 3.33×. Everything below that is a loss no amount of scaling fixes.

This is the grading Koda applies internally, and the reason it grades against your margin rather than a fixed scale: a fixed "2× = good" told low-margin sellers they were winning while they burned cash.

What a realistic ROAS actually looks like

The scale used above comes from 29 real advertiser dashboards harvested read-only from a 4,000-member e-commerce community, anonymised. Of those, 9 stated a ROAS: the median was 2.95, with the bulk between 2 and 3.5.

One caveat stated plainly, because it changes how you should read that number: people share wins. The figures describe what a good campaign looks like when someone is proud enough to post it, not the average campaign. Treat 2.95 as the top of the shared wins, not as a midpoint you are failing to reach.

What to do with the verdict

Above 2× break-even: this is a winner, and the constraint is your budget, not the creative.

Between 1.4× and 2× break-even: healthy. Keep it running and leave it alone.

Between 1× and 1.4×: borderline. More spend will not fix a creative that is only just clearing its costs — change the creative first.

Below break-even: the campaign is losing money on every sale. This is the one case where pausing beats optimising.

Frequently asked

What is a good ROAS?: There is no universal answer, and that is the point. A good ROAS is one comfortably above your break-even, which is 1 ÷ your margin rate. At a 50% margin, break-even is 2× and a good campaign is around 3× or more. At a 25% margin, break-even is 4× and a 3× campaign is losing money.
How do I calculate break-even ROAS?: Divide 1 by your margin rate. A 40% margin is 1 ÷ 0.40 = 2.5×, so every euro of ad spend must bring back 2.50 € of revenue before the campaign contributes anything.
Should margin include shipping and payment fees?: Yes, if you want the break-even figure to be true. Use your contribution margin: selling price minus product cost, shipping, payment fees and anything else that scales with each order. Leaving them out flatters the number by exactly the amount they cost you.
Is 2x ROAS good?: Only at a margin of 50% or better. At 50% it is exactly break-even, so 2× means the campaign paid for itself and nothing more. Below a 50% margin, 2× is a loss.

Where these numbers come from

Koda’s own grading scale — src/lib/ads/benchmarks.ts — the tiers this page uses are the ones the product applies, imported, not retyped.
29 anonymised advertiser dashboards (n=9 with a stated ROAS) — Harvested read-only from a 4,000-member e-commerce community, August 2026. Median 2.95, bulk 2–3.5. Survivorship bias is real and stated above.