Google Ads ROAS Calculator
Calculate your Return On Ad Spend to measure campaign profitability.
Campaign Performance Projections
Projected Clicks:
0
Projected Conversions:
0
Total Revenue:
$0.00
ROAS Multiplier:
0x
Return On Ad Spend (ROAS):
0%
What is ROAS (Return On Ad Spend)?
Return On Ad Spend (ROAS) is a critical marketing metric that measures the amount of revenue your business earns for every dollar it spends on advertising. Unlike ROI, which considers overall profitability including operating expenses, ROAS focuses strictly on the effectiveness of your specific ad campaigns.
For example, if you spend $1,000 on Google Ads and generate $5,000 in revenue, your ROAS is 5:1, or 500%.
How to Calculate ROAS
The formula for calculating ROAS is simple:
ROAS = Revenue Derived from Ads / Cost of Ads
Our calculator above goes a step further by helping you project your ROAS based on granular metrics like CPC (Cost Per Click) and Conversion Rate. Here is the logic we use:
- Total Clicks = Ad Budget / CPC
- Total Conversions = Total Clicks × (Conversion Rate / 100)
- Total Revenue = Total Conversions × Average Order Value (AOV)
- ROAS % = (Total Revenue / Ad Budget) × 100
What is a "Good" ROAS?
While a "good" ROAS varies by industry and profit margins, common benchmarks include:
- Below 300% (3:1): Often considered the break-even point for many ecommerce businesses once cost of goods sold (COGS) and shipping are factored in.
- 400% (4:1): Generally considered a profitable campaign.
- 800% (8:1) or higher: Highly successful campaign, allowing for aggressive scaling.
Why Use a ROAS Calculator?
Using a ROAS calculator helps digital marketers and business owners determine the viability of paid traffic channels. By inputting your average CPC and conversion rates, you can estimate whether your current budget allocation will yield a profit or a loss before scaling your ad spend.