Free tool
Break-even ROAS calculator
There is no universal "good ROAS". The number that matters is the ROAS where your orders from ads stop losing money — and it depends entirely on your margins.
Calculator
What ROAS do you need?
How it works
How break-even ROAS is calculated
Contribution margin per order = order value − product cost − payment and platform fees − shipping and packing − revenue lost to returns and RTO.
Break-even ROAS = order value ÷ contribution margin. At that ROAS, ad spend uses up the entire margin and you make nothing.
Break-even cost per purchase = contribution margin. Pay more than this for an order and you lose money on it.
If you want profit after ads, subtract your target profit from the margin first — that gives the ROAS you should actually aim for. Remember that repeat purchases change the picture: a brand with strong repeat orders can afford a lower first-order ROAS.
Questions
What is a good ROAS for D2C brands in India?
It depends on your margin. A brand with a high contribution margin can be profitable at a ROAS that would lose money for a thin-margin brand. Calculate your own break-even first, then compare.
Should I use platform ROAS or blended ROAS?
Track both. Platform ROAS is what Meta reports; blended ROAS is total revenue ÷ total ad spend. Blended ROAS is harder to fool and better for business decisions.
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