Google Ads ROAS Calculator
Your margin before ad costs.
Return on Ad Spend (ROAS):
0.00x
ROAS Percentage:
0%
Break-Even ROAS:
0.00x
Net Profit (After Ads):
$0.00
Campaign Status:
Understanding Return on Ad Spend (ROAS)
Return on Ad Spend (ROAS) is one of the most critical metrics for evaluating the effectiveness of Google Ads, Facebook Ads, or any other digital advertising campaign. Unlike ROI, which looks at the overall investment, ROAS focuses specifically on the gross revenue generated for every dollar spent on advertising.
How to Calculate ROAS
The formula for calculating ROAS is relatively simple:
ROAS = Revenue from Ads / Cost of Ads
For example, if you spend $1,000 on Google Ads and generate $5,000 in revenue, your ROAS is 5.0 (or 500%). This means for every $1 you spent, you got $5 back.
Why Break-Even ROAS Matters
A high ROAS doesn't always guarantee profitability. You must consider your Profit Margin. If your product costs represent 80% of the sale price (leaving a 20% margin), you need a much higher ROAS to cover your ad costs than someone with a 90% margin.
The Break-Even ROAS formula is:
Break-Even ROAS = 1 / (Profit Margin % / 100)
Using our calculator above, you can determine exactly what ROAS target you need to hit to start making a real profit.
Analyzing Your Results
- Above Break-Even: Your campaigns are profitable. You can likely scale your budget.
- At Break-Even: You are not losing money, but you aren't gaining net profit. Focus on optimizing ad copy or landing pages.
- Below Break-Even: You are losing money on every sale. Pause underperforming keywords and review your pricing strategy immediately.