What is a good ROAS in 2026?

The short answer

A good ROAS is any figure above your break-even ROAS, which is 1 divided by your contribution margin. At a 40% margin you break even at 2.5x, so 3x to 4x is healthy. Most UK ecommerce brands run blended ROAS between 2x and 4x on paid social and 3x to 6x on branded-heavy Google. Judge the blended number across all spend, and judge new-customer ROAS separately.

Break-even ROAS comes before any benchmark

Work out contribution margin per order after COGS, shipping, payment fees and returns. Divide 1 by that margin. A 30% margin means break-even sits at 3.33x. Anything below that loses money on every order, however good the platform dashboard looks.

Then set a target above break-even that funds overheads and profit. Most brands add 30% to 50% on top. If break-even is 3x, a 4x target gives room. Repeat purchase brands can run closer to break-even because the second order carries no acquisition cost.

Platform ROAS and blended ROAS are different numbers

Meta reports on a 7-day click and 1-day view window. TikTok defaults to the same. Google claims the same conversions again. Add the three dashboards together and you will often see 120% to 160% of your actual order volume. Never budget against that total.

Blended ROAS is total revenue divided by total ad spend, taken from your commerce platform. It cannot be inflated. Track it weekly alongside MER and new-customer CAC. If blended ROAS holds while platform ROAS falls, the media is fine and the reporting has drifted.

Benchmarks by category, used with care

Public benchmarks put average ecommerce ROAS in a 2x to 4x band, with beauty and supplements at the higher end and furniture and electronics lower on thin margins. Treat any published figure as a range, because average order value and margin move it more than media skill.

Subscription and high-LTV brands should be judged on payback period instead. A 1.5x first-order ROAS works when the customer pays back inside 60 days. A 4x looks strong and still fails if half those orders come back as returns.

Quick answers

Is a 2x ROAS good?

Only if your contribution margin is above 50%. At 2x you return £2 for every £1 spent, so a 40% margin brand loses money on every order. Check break-even before calling any multiple good or bad.

Why does my ROAS drop as I increase budget?

Because you are buying less efficient impressions. The first £1,000 reaches your warmest audience. The tenth £1,000 does not. Watch marginal ROAS on the extra spend, which usually sits well below the account average.

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