Google Ads ROAS Calculator
Calculate your Return On Ad Spend, Profit, and Conversion Metrics
Your total monthly budget.
Cost Per Click.
Percentage of visitors who buy.
Average revenue per sale.
Est. Total Clicks (Traffic):
0
Est. Total Conversions:
0
Cost Per Acquisition (CPA):
$0.00
Total Revenue:
$0.00
Total Net Profit:
$0.00
ROAS (Return On Ad Spend):
0%
ROAS Multiplier:
0x
What is ROAS in Google Ads?
Return On Ad Spend (ROAS) is a critical marketing metric that measures the amount of revenue your business earns for every dollar spent on advertising. Unlike ROI, which accounts for total expenses (including COGS and operations), ROAS specifically looks at the efficacy of your ad budget.
The formula for calculating ROAS is simple:
ROAS = (Total Revenue from Ads / Total Ad Spend) × 100
How to Use This Calculator
This tool helps digital marketers and business owners forecast potential returns before launching a campaign, or analyze current performance. Here is what the inputs mean:
- Total Ad Spend: The specific budget allocated to your PPC campaign.
- Average CPC: The cost you pay every time someone clicks your ad. This varies by industry and keyword competition.
- Conversion Rate: The percentage of ad clicks that result in a sale or lead.
- Average Order Value (AOV): The average dollar amount a customer spends per transaction.
What is a "Good" ROAS?
While a "good" ROAS varies heavily by industry and profit margins, a common benchmark is a 4:1 ratio (400%). This means for every $1 spent on ads, you generate $4 in revenue. However, if you have low profit margins, you might need a ROAS of 10:1 to be profitable. Conversely, high-margin software businesses might thrive on a 2:1 ROAS.
Improving Your ROAS
If your calculation shows a low or negative return, consider these optimization strategies:
- Refine Keyword Targeting: Use negative keywords to stop paying for irrelevant clicks.
- Improve Quality Score: Higher quality scores lower your CPC.
- Optimize Landing Pages: A better user experience increases your Conversion Rate.
- Increase AOV: Use upsells and bundles to increase the revenue generated per conversion.