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What ROAS should I actually be targeting, and how do I use benchmarks correctly?

Ignore the flat '3x is good' rule, your target ROAS is whatever clears your break-even ROAS, set by your gross margin, not a benchmark someone posted online. A 60% margin brand can be healthy at 2.5x while a 30% margin brand needs 4x+ just to break even, compute your own number before comparing yourself to anyone. Use published benchmarks only to sanity-check you're in the right zip code for your category, never as your actual target.

Go deeper

4 resources, 1 India-specific, 4 link-checked.

📄 Article
✓ Link checked Free Beginner

Resets unrealistic expectations with real 2025 benchmark data by vertical, useful for checking your ROAS against your actual category instead of a made-up universal target.

What Is a Good ROAS? 2025 Industry Benchmarks and Strategies

From Triple Whale by Triple Whale

  • 2025 ROAS benchmarks segmented by ecommerce vertical
  • Framework for computing your own break-even ROAS from margin
  • Why blended ROAS and platform-reported ROAS diverge
Open triplewhale.com →
📄 Article
✓ Link checked India Free Beginner

Spells out the exact CAC, LTV and payback period formulas with an India lens, the most direct answer we found to 'how do I actually calculate this for my brand' rather than just defining the terms.

D2C Unit Economics: The Exact Formulas for CAC, LTV & Payback Period

From FireAI by FireAI

  • Exact CAC, LTV and payback period formulas
  • Worked through with Indian D2C context
  • Payback period framed as a target metric, not an afterthought
Open fireai.in →
📋 Template
✓ Link checked Free Beginner

A free, ready-to-use spreadsheet to actually compute your LTV, CAC and ratio instead of eyeballing it, the fastest way to get from 'I think we're profitable' to a real number.

LTV/CAC Ratio Template (Free Excel Template)

From Corporate Finance Institute by Corporate Finance Institute

  • Ready-made LTV and CAC calculation structure
  • Produces a defensible LTV:CAC ratio from your own inputs
  • Free download, no signup gate mentioned
Open corporatefinanceinstitute.com →
📄 Article
✓ Link checked Free Intermediate

Ties CAC and ROAS back to contribution margin in one framework, which is the missing link that stops founders from optimising a metric that looks good but doesn't actually mean the business is profitable.

D2C Metrics 2026: CAC, LTV, ROAS & Contribution Margin

From Fairview by Fairview

  • Contribution margin as the metric that reconciles ROAS and CAC
  • 2026-updated D2C metric definitions
  • How the four core metrics should be read together, not in isolation
Open getfairview.com →

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The same ground, over in Grow & market, our Starting Up track.

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