Google Ads ROAS Calculator: Break-Even and Target ROAS
Find your current ROAS, the break-even ROAS your margins allow, and the target ROAS to enter in Google Ads to hit your profit goal.
Campaign numbers
Margins and goal
Results
Target ROAS to enter in Google Ads
Enter your numbers to see where you stand.
What ROAS tells you, and what it does not
Return on ad spend (ROAS) is conversion value divided by ad spend. A ROAS of 4x means every dollar spent brought back four dollars in revenue. It is a revenue ratio, not a profit ratio, so the same ROAS can be great for one business and a loss for another. Margins decide which.
Break-even ROAS
Break-even ROAS is the point where ad spend eats exactly the margin a sale leaves behind. The calculator first finds your contribution margin: gross margin minus other variable costs such as payment fees, shipping and returns. Break-even ROAS is 1 divided by that margin. With a 40% contribution margin, you need 2.5x just to stay even.
Target ROAS for Google Ads
To keep a set profit after ads, subtract your profit goal from the contribution margin and divide 1 by what is left. With a 40% margin and a 15% profit goal, 1 / 0.25 gives 4x. Google Ads asks for target ROAS as a percentage, so you would enter 400% in a tROAS bid strategy.
- Below break-even: each sale costs more to win than it earns.
- Between break-even and target: profitable, but short of your goal.
- Above target: room to scale spend or bid more aggressively.
The CPA lines show the same limits per order, which helps when you bid on target CPA instead.
Frequently asked questions
Should I enter my break-even ROAS as the target in Google Ads?
No. At break-even you earn nothing after ads, and overhead like salaries and rent is still unpaid. Start from the target ROAS this calculator gives you, then adjust based on how much volume Google can deliver at that level.
Why does Google Ads show a different ROAS than my store?
Google counts conversions by its own attribution model and conversion window, and conversion value may include tax or shipping depending on your setup. Compare like with like, and use your store or CRM revenue when you judge profitability.
What if my profit target is higher than my margin?
Then no ROAS can reach it, and the calculator says so. You would need a better margin, a higher order value, or a lower profit goal for paid search.