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ROAS Benchmarks

SaaS ROAS Benchmarks

What a profitable ROAS actually looks like for software companies, based on typical margins and cost structures.

Typical Gross Margin75% – 90%
Break-Even ROAS1.1x – 1.3x
Target ROAS Range1.5x – 3.0x

Why This Number

Software has near-zero marginal cost per additional user, mostly server space and support. These high gross margins mean SaaS companies can break even at a very low ROAS.

Common Mistake

Measuring ROAS only on first-month subscription revenue — a 0.5x day-one ROAS looks like a failure, but if the average customer stays 24 months, the campaign generates a strong return over time.

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