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Break-even ROAS is the benchmark that matters

Break-even ROAS = 1 ÷ gross margin. If your gross margin is 40%, break-even is 1 ÷ 0.40 = 2.5x. Anything above that makes a contribution to profit and anything below it loses money, whatever the industry average says.

That is also why the famous “4x ROAS” rule is misleading. 4x is simply the break-even point for a business with a 25% gross margin. If your margins are different, your target should be different. For the same idea applied to profit-based bidding, see my guide to switching to POAS bidding.

Break-even ROAS by gross margin

Worked from the formula above, so no outside source is needed.

Gross marginBreak-even ROAS
15%6.67x
20%5.0x
25%4.0x
30%3.33x
40%2.5x
50%2.0x
60%1.67x
85%1.18x

Google Ads ROAS benchmarks by industry

The most complete industry-level Google Ads ROAS table I could verify is Varos’s median ROAS, published by WhatConverts (Varos figures updated April 2025). The all-industry median is 3.31x. Industries with typical ecommerce products:

IndustryMedian Google Ads ROAS
Baby care6.09x
Automotive parts5.44x
Kitchenware4.81x
Home appliances4.53x
Home improvement4.07x
Furniture3.87x
Subscriptions3.26x
Food and beverage3.20x
Beauty3.07x
Personal care3.05x
Textiles2.91x
Pet care2.55x
Healthcare products2.52x
Median, all industries3.31x

Source: Varos data published by WhatConverts. The same source lists service and lead-generation industries too, for example B2B SaaS at 1.29x and travel services at 7.71x, which shows how far ROAS depends on the business model. It is not UK-specific data, and I have not found a published UK-only ROAS-by-industry dataset from a named source.

Google Ads ROAS benchmarks by campaign type

A second, more recent view splits ROAS by campaign type rather than industry. It comes from Harucon Ventures Google Ads ecommerce study: 38 Google Ads accounts, most in Germany, Austria and Switzerland, with a snapshot covering May to mid-August 2026.

Campaign typeAccountsMedian ROAS25th to 75th percentile
Search (including brand)364.30x2.39x to 8.44x
Shopping192.30x1.29x to 3.35x
Performance Max312.30x1.71x to 3.82x
Demand Gen121.08x0.50x to 2.75x

Source: Harucon Ventures Google Ads ecommerce study. Its authors note that Search’s high median is driven partly by brand searches, so it is a weak benchmark for prospecting keywords.

My own ecommerce median is 6.5x, from four accounts

For context, here are figures from ecommerce accounts I manage, labelled clearly as a small sample of my own. Across four ecommerce accounts (about £158k of spend, Search, Shopping and Performance Max combined, 1 October 2025 to 30 September 2026), the median ROAS was 6.5x, with an interquartile range of 5.2x to 8.6x. Pooled (total revenue over total spend), it was 9.5x. ROAS here is purchase conversion value divided by cost.

Treat that with care. It is four accounts, mostly small UK businesses, across supplements, signs, home fragrance and pet products. I excluded accounts where purchase tracking was known to be broken or unreliable, which makes the figures look better than an average account would. It is what a well-tracked account can look like, not a UK market average, and it sits above the published medians above. With only four accounts I would not read much into that gap.

How to use these benchmarks without fooling yourself

Industry medians are useful for one thing: a sanity check on whether your number is wildly out. They cannot tell you whether you are profitable, because they are averages of businesses with different margins, product mixes, brand strength and attribution settings.

Three things to bear in mind. First, every figure above is platform-reported, so it depends on attribution. Second, the sources use different samples and periods (Varos is updated to April 2025, Harucon is May to August 2026), so do not mix them in one comparison. Third, brand searches inflate Search ROAS in every dataset, so a high number does not mean prospecting is working.

The practical approach: find your break-even ROAS, set a target comfortably above it, then use the benchmarks only to see whether you are in a plausible range.

Three scenarios that show why margin determines everything

The metric most ecommerce brands should also watch

MER (Marketing Efficiency Ratio) is total revenue divided by total ad spend across all channels. It gives you a channel-agnostic view of marketing performance, and unlike ROAS it does not depend on attribution models or platform reporting. If your MER holds steady while platform ROAS rises, check how conversions are being attributed.

Attribution windows can change your reported ROAS

Platform-reported ROAS changes depending on whether you count view-through or click-based conversions and on the attribution window. A longer window can report a higher ROAS for exactly the same underlying sales. If you are comparing ROAS across platforms without matching the attribution model, you are comparing different things.

The practical fix is to track MER alongside platform ROAS. If they move together, your reporting is broadly accurate. If they diverge, check attribution settings before drawing conclusions.

Customer lifetime value can justify a lower first-order ROAS

For consumables such as supplements, skincare, pet food or coffee, the first order may make little or no profit. That is acceptable if customers reorder predictably. If your customer lifetime value is three times your average order value, you can afford to acquire at a ROAS that looks weak on the first purchase, because the maths works across the relationship.

That is why CLV-adjusted ROAS targets make sense for repeat-purchase businesses. Work it out from your own reorder data rather than assuming it.

What to track alongside ROAS

Sources for the figures on this page

Every third-party number on this page links to the study it came from. If you find a newer dataset, send it over and I will update the page.

Frequently asked questions

What is a good ROAS for ecommerce?

A good ROAS is one above your break-even ROAS, calculated as 1 ÷ gross margin. A 40% margin breaks even at 2.5x. For reference, Varos’s median Google Ads ROAS across industries is 3.31x, but your own margin should set your floor, not an industry average.

What is the average ROAS by industry on Google Ads?

Varos data published by WhatConverts gives a 3.31x median across industries, ranging from 1.29x for B2B SaaS to 6.09x for baby care and 5.44x for automotive parts. Ecommerce categories such as beauty (3.07x) and pet care (2.55x) sit lower. See the table above for more.

What is a good ROAS for Google Ads Search versus Shopping?

One 2026 study of 38 accounts found a median ROAS of 4.30x for Search (including brand), 2.30x for Shopping and 2.30x for Performance Max. Brand searches lift Search, so the figure is a weak guide for non-brand keywords.

How do I calculate my break-even ROAS?

Divide 1 by your gross margin percentage as a decimal. At 40% margin that is 1 ÷ 0.40 = 2.5x. Above that figure, ad spend contributes profit. Below it, you lose money on each sale, whatever the platform reports.

Is a 2x ROAS good for ecommerce?

It depends on your margin. At 85% gross margin a 2x ROAS is profitable, because break-even is about 1.18x. At 15% margin, break-even is 6.67x, so 2x loses money on every order. Calculate break-even first, then judge.

What is a good ROAS in B2B?

B2B is usually measured on leads and pipeline rather than ROAS. In Varos data, B2B SaaS has a median Google Ads ROAS of 1.29x, but that depends on how revenue is attributed to ad clicks. Judge B2B on cost per qualified lead and customer value.

What is MER and how is it different from ROAS?

MER (Marketing Efficiency Ratio) is total revenue divided by total ad spend across all channels. Unlike ROAS it does not depend on any one platform’s attribution model, so it is a steadier check on overall marketing health.

Why does my Google Ads ROAS differ from my actual revenue?

Attribution windows are the usual cause, along with view-through conversions, returns, cancellations and duplicate tracking. Compare platform ROAS with revenue in your own store or accounts, and fix conversion tracking before trusting any target.

Not sure what ROAS you should actually be targeting?

I work with UK ecommerce brands to set targets from their margins, tracking and growth stage, not from generic benchmarks. Google Ads management is from £300/month, and an in-depth audit is £450. Start a conversation and I will tell you honestly where to begin.

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