ROAS Benchmarks
Ecommerce & DTC ROAS Benchmarks
What a profitable ROAS actually looks like for direct-to-consumer and ecommerce brands, based on typical margins and cost structures.
Typical Gross Margin40% – 60%
Break-Even ROAS1.6x – 2.5x
Target ROAS Range2.5x – 4.0x
Why This Number
DTC brands cover manufacturing, inventory holding, fulfillment, and shipping costs, but can accept a lower first-purchase ROAS because they own the customer relationship and can profit from repeat purchases over time (Customer Lifetime Value).
Common Mistake
Ignoring post-purchase costs — a 3x ROAS looks profitable on a dashboard until factoring in a 15% return rate and payment processing fees, which can pull a campaign below true break-even.
Know Your Break-Even ROAS Before You Spend Another Dollar
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