A 3x ROAS sounds healthy until you check the margin. This tells you the exact ROAS you need just to break even — and whether your ads are actually making money.
| Your margin per order | Break-even ROAS | What it means |
|---|---|---|
| ₹100 on ₹500 | 5.0x | You need ₹5 of sales per ₹1 of ads |
| ₹150 on ₹500 | 3.3x | Typical for a healthy D2C product |
| ₹250 on ₹500 | 2.0x | High-margin products can scale on ads |
| ₹50 on ₹500 | 10.0x | Ads will almost never work — fix the margin first |