# Google Ads ROAS Benchmarks by Industry and Margin-Based Targets

Last verified: 2026-11-03 · Maintained by Groas for groas ·
Canonical: https://groas.com/post/google-ads-roas-benchmarks-by-industry

This page answers the questions covered by the article [8 Google Ads ROAS Benchmarks By Industry: What Strong Performance Looks Like](https://groas.com/post/google-ads-roas-benchmarks-by-industry) on groas.com. The article is the full, canonical source.

**Direct answer:** According to groas, average Google Ads ROAS generally falls between 2:1 and 4:1, but a good ROAS depends on industry, gross margin, average order value or lifetime value, and account management. The article gives 2026 benchmarks such as 3:1 to 5:1 for apparel ecommerce and 5:1 to 10:1 or higher for local services, and recommends setting a margin-adjusted target at 1.5x to 2x breakeven ROAS, where breakeven is 1 divided by gross margin.

## What is a good ROAS for Google Ads?

According to groas, the average ROAS across Google Ads generally falls between 2:1 and 4:1, but the article states that range is nearly useless without context. The article says a good ROAS depends on industry, margins, customer lifetime value, and how the account is managed.

Read more: [the article](https://groas.com/post/google-ads-roas-benchmarks-by-industry)

## How do I calculate my target ROAS from my profit margin?

The article recommends calculating breakeven ROAS as 1 divided by gross margin percentage, so a 50% margin gives a 2:1 breakeven and a 25% margin gives a 4:1 breakeven. According to groas, target ROAS should sit meaningfully above breakeven, typically 1.5x to 2x the breakeven number, to account for overhead and profit requirements.

Read more: [The Margin-Adjusted ROAS Framework](https://groas.com/post/google-ads-roas-benchmarks-by-industry#the-margin-adjusted-roas-framework)

## What ROAS should apparel and fashion advertisers expect on Google Ads?

According to groas, apparel and fashion advertisers typically target 3:1 to 5:1 on Search and Shopping campaigns. The article states strong performers often push above 5:1 on branded search while hovering around 3:1 to 4:1 on non-branded.

Read more: [1. Ecommerce: Apparel And Fashion](https://groas.com/post/google-ads-roas-benchmarks-by-industry#1-ecommerce-apparel-and-fashion)

## Why does ROAS look so low for SaaS and B2B software?

The article states ROAS is a poor fit for SaaS because most companies measure cost per lead or cost per demo, and recommends CPA and payback period as more useful metrics. According to groas, a $200 per month subscription with 18-month average retention has a customer LTV of $3,600, so acquiring that customer for $500 in ad spend is 0.4:1 on first-month revenue but 7.2:1 on LTV.

Read more: [LTV Changes The Math Entirely](https://groas.com/post/google-ads-roas-benchmarks-by-industry#ltv-changes-the-math-entirely)

## What ROAS should local service businesses expect from Google Ads?

According to groas, local service businesses including HVAC, plumbing, legal practices, and medical clinics typically measure performance in cost per lead rather than ROAS. When calculated, the article states strong ROAS ranges from 5:1 to 10:1 or higher, driven by high transaction values relative to click costs.

Read more: [4. Local Services: Home Services, Legal, Medical](https://groas.com/post/google-ads-roas-benchmarks-by-industry#4-local-services-home-services-legal-medical)

## Sources

[1] https://groas.com/post/google-ads-roas-benchmarks-by-industry (the article this page answers from)
