Cost guide

What is a good ROAS for Meta ads in India?

A good ROAS is any number comfortably above your break-even ROAS, which is 1 ÷ your profit margin before ads. A 25% margin needs 4× just to break even, while a 60% margin breaks even near 1.7×. For reference, Novo Shoes averaged 6.93× in April 2026 (Meta Ads Manager).

Good ROAS depends on your margin

Margin before adsBreak-even ROAS (1 ÷ margin)What a good ROAS looks like
25%4.0×Comfortably above 4×, for example 5× or more
40%2.5×Comfortably above 2.5×
54.5% (our worked example)1.83×Comfortably above 1.83×; 2.53× leaves a 15% profit
60%About 1.7×Comfortably above 1.7×
0×2×4×6×8×10×10%25%50%75%100%25%: 4.00×40%: 2.50×54.5% (our worked example): 1.83×60%: 1.67×
At a 40% margin, break-even ROAS is 1 ÷ 0.40 = 2.50×. Anything comfortably above it is good.

Break-even ROAS = 1 ÷ margin before ads. Margin = (order value − product cost − shipping and packing − payment fees) ÷ order value. Use our break-even ROAS calculator for your own numbers.

What is ROAS?

ROAS stands for return on ad spend: the sales the ads generate for every ₹1 spent on them. If you spend ₹1,00,000 and the ads bring ₹3,00,000 in sales, your ROAS is 3×. Meta Ads Manager reports it as purchase ROAS. The explainer on what ROAS is covers the definition in more depth.

ROAS measures revenue, not profit. A 3× ROAS can be a loss for one brand and a good result for another. That is the reason a single "good ROAS" number does not exist.

How do you calculate break-even ROAS?

Break-even ROAS is the lowest return at which your ads stop losing money. It is the floor, not the target.

Worked example. An order of ₹2,000 with ₹700 of product cost, ₹150 of shipping and packing and 3% payment fees (₹60) leaves ₹1,090. That is a 54.5% margin, so break-even ROAS is 1 ÷ 0.545 = 1.83. To keep 15% of every sale as profit after ads you need 1 ÷ (0.545 − 0.15) = 2.53.

Use the break-even ROAS calculator to run your own order value and costs.

  • Profit per order before ads = order value − product cost − shipping and packing − payment fees
  • Margin before ads = profit per order before ads ÷ order value
  • Break-even ROAS = 1 ÷ margin before ads
  • ROAS for a target profit = 1 ÷ (margin before ads − target profit %)

What is a good ROAS for Meta ads?

Anything comfortably above your break-even. A brand with a 25% margin needs 4× just to cover its costs. A brand with a 60% margin breaks even at about 1.7×, so 3× is a strong result for it. A fixed target like "4× is good" is wrong for one of these two brands.

We do not quote industry-wide average ROAS here. Published averages mix categories, margins and attribution settings, and we have not verified any published figure against its underlying data, so we cannot stand behind one. Your own break-even and your own history are better guides.

Set a floor and a target. The floor is your break-even ROAS. The target is the ROAS that leaves the profit you want after ads, using the last formula above.

What ROAS did our clients see?

These are real accounts we managed. They show the range, not a promise. Both are brands with an existing audience, not starting points.

Campaign (Novo Shoes, April 2026)Ad spendPurchasesPurchase valueROAS
Dynamic retargeting (catalogue)$1,503.76224$20,986.2613.96×
Always-on catalogue (Advantage+)$2,049.90234$17,921.808.74×
Offer: static, video and catalogue$2,184.66201$17,869.078.18×
Always-on Advantage+ (creatives)$5,517.79420$39,445.077.15×
Sales: flexible ads$2,031.23146$13,410.006.60×
Traffic: reels and video (optimised for landing-page views)$2,392.559$883.900.37×
Account total$15,939.541,234$110,518.116.93×
Sorted by return on ad spend, scale starts at zero.

Source: Meta Ads Manager, Novo Shoes NZ ad account, 1–30 April 2026, as shown on the Novo Shoes case study. Our clients sell across India, the US, New Zealand and Australia; these results come from those brands, not from Indian domestic sales.

What does this teach about ROAS?

Campaign type moves ROAS a lot

Five sales campaigns delivered between 6.60× and 13.96×. Retargeting is the highest because it speaks to people who already know the brand. The traffic campaign was bought for landing-page views, not purchases, so its 0.37× is not a failure. It was never meant to sell.

Blended ROAS can look different from Ads Manager ROAS

Diya Diya spent $48.3K on ads over eight months and made $387.7K in revenue across paid, organic and creator sales: an 8× blended return. That is total revenue over ad spend, so it is not the same measure as Meta's purchase ROAS. Our Diya Diya case study explains the mix.

Early spend is for learning

In its first two months Diya Diya spent only $300–$400 a month, while the store, tracking and creative were fixed first. Spending more earlier would have wasted the budget. Meta also needs about 50 optimisation events per ad set within 7 days to leave its learning phase, so very small budgets learn slowly (Meta Business Help Center).

What changes your ROAS?

Margin

Margin sets your break-even and your room to scale. Higher margins let you accept lower ROAS and still grow.

Average order value

A higher order value spreads shipping and payment costs and improves margin per order. Bundles and thresholds help here.

Campaign type and funnel stage

Retargeting and catalogue campaigns return more than prospecting. A healthy account runs both, and judges prospecting against its role, not against retargeting.

Creative

New creative is usually the biggest lever. Hooks, formats and offers decide who stops scrolling.

Store conversion rate

If the store converts poorly, better ads will not help. Checkout, speed and trust signals all affect the number.

Attribution

Ads Manager counts sales inside its attribution window, which can differ from your store's records. Check blended ROAS (total sales divided by total ad spend) from your own data too.

Freelancer, agency or in-house: who should manage ROAS?

Whoever manages your ads should be judged on profit, not on ROAS alone.

Compared onFreelancerAgencyIn-house
StrengthLow cost, flexibleA team and a view across accountsDeepest knowledge of your brand
RiskOne person's capacityShared attentionYou carry the cost whatever happens
Ask themWhat is my break-even, and what ROAS do you expect?Same, and how do you report profit?Same

Compare cost in our in-house vs agency Meta ads comparison and Meta ads agency fees guide.

What does pSkyro Labs charge, and how does it relate to ROAS?

pSkyro Labs charges 5% of the profit the campaigns make: sales times your profit margin, minus the ad budget. No profit, no fee. Your ad budget is separate and paid to Meta. At break-even ROAS, profit is zero and so is our fee, which is why break-even is the first number we calculate.

Our studio is in Bhopal and we manage ads for brands across India, the US, New Zealand and Australia. See performance marketing in Bhopal and the performance marketing service.

How do you set your own ROAS target?

  • Work out your margin before ads and your break-even ROAS.
  • Decide the profit you want, as a percentage of sales, and calculate the ROAS that gives it.
  • Use your own last three months as the baseline, by campaign type.
  • Plan a budget that can reach about 50 purchases per ad set in a week. The [Meta ads budget calculator](/tools/meta-ads-budget-calculator) shows the maths.
  • Judge prospecting and retargeting separately.
  • Check blended ROAS from your store data as well as Ads Manager.
FAQ

Questions people ask.

What is a good ROAS for Meta ads?

Anything comfortably above your break-even ROAS, which is 1 ÷ your margin before ads. A 25% margin needs 4× to break even, and a 60% margin about 1.7×.

Is 4x ROAS good?

It depends on your margin. At a 25% margin, 4× is exactly break-even. At 60%, it leaves a healthy profit. Calculate your break-even first.

How do I calculate break-even ROAS?

Margin before ads is order value minus product cost, shipping and packing, and payment fees, divided by order value. Then break-even ROAS is 1 ÷ margin. A ₹2,000 order with ₹1,090 left has a 54.5% margin and a 1.83× break-even.

What ROAS have your clients seen?

Novo Shoes averaged a 6.93× purchase ROAS in April 2026, with five sales campaigns between 6.60× and 13.96× (Meta Ads Manager). Diya Diya made an 8× blended return over eight months. These are established brands selling across India, the US, New Zealand and Australia.

What is the average ROAS on Facebook ads in India?

We do not give an industry average because we could not verify a published figure with its data. Your own break-even and your own past results are better guides.

What is the difference between ROAS and blended ROAS?

ROAS from Ads Manager counts sales attributed to ads. Blended ROAS is total sales divided by total ad spend, using your store's numbers, including organic and creator sales.

Does my agency's fee change the ROAS I need?

Yes, if the fee is charged on ad spend. At 13.5% of spend, a brand with a 54.5% margin needs 2.08× instead of 1.83×. A fee on profit, like ours, is zero at break-even and does not move it.

How much should I spend to get useful ROAS data?

Enough for each ad set to reach about 50 purchases in 7 days, per Meta's learning phase guidance. Our budget calculator works it out from your cost per purchase.

See our performance marketing service

Sources

Our own results: Meta Ads Manager (Novo Shoes, 1–30 April 2026, US$15,939.54 spend, US$110,518.11 purchase value, 6.93×) and Diya Diya (eight months, US$48.3K ad spend, US$387.7K revenue, 8× blended). Formula: our break-even ROAS calculator. We cite no third-party ROAS benchmarks because we could not verify one against its data.

  1. About the learning phase, Meta Business Help Center
  2. Novo Shoes case study: Meta Ads Manager, 1-30 April 2026
  3. Diya Diya case study: eight-month US growth engagement

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