Google Ads ROAS Calculator

ROAS on Google Ads

In Google Ads, ROAS is reported as Conv. value / cost, and it depends entirely on which conversion actions carry a value and which attribution model they use. Before trusting the number, check that only purchase-type actions are marked Primary and that their value is the order value, not a fixed placeholder — a lead action with a default value of 1 quietly destroys the ratio.

The break-even ROAS this calculator returns is the number to put in front of a Target ROAS bid strategy. Google expresses targets as percentages (a 3.0× target is 300%), and setting a target below your break-even simply buys unprofitable conversions at scale. Brand campaigns run far above break-even and Performance Max blends everything, so calculate per campaign type, not per account.

Formula

ROAS = Revenue from ads ÷ Ad spend
Break-even ROAS = 1 ÷ Gross margin
Profit after ad spend = (Revenue × Gross margin) − Ad spend

How to read ROAS

ROAS answers one question: for every unit spent on ads, how much revenue came back? A ROAS of 4.0 (or 400%) means each 1 spent returned 4 in revenue. It says nothing about profit, which is why the break-even figure matters more than the headline number.

Break-even ROAS is the inverse of gross margin. At a 40% margin you need a 2.5× ROAS just to cover the cost of goods and the ads; anything below that loses money on every sale even though revenue is growing. Set campaign targets above break-even, not above zero.

Frequently asked questions

Why is Google Ads ROAS different from my Shopify or GA4 revenue?

Google Ads counts conversion value through its own click-based attribution with a lookback window; GA4 and your store use different rules and sessions. A gap of 10–30% is normal. Use the same source consistently when you compare periods, and reconcile against actual revenue monthly.

What is a good ROAS for Google Ads?

Whatever exceeds your break-even ROAS by enough margin to be worth the working capital. Branded search often runs 8–20× because it captures existing demand; non-brand shopping and search commonly sit between 2× and 5×. Compare campaigns against their own break-even, not against each other.

What is a good ROAS?

A ROAS comfortably above your break-even ROAS. For a 50% margin business break-even is 2.0×, so 3–4× leaves room for profit; for a 20% margin business break-even is already 5.0×. The same ROAS number can be excellent for one business and a loss for another.

Why is my ROAS different in Google Ads, Meta and GA4?

Each platform attributes conversions with its own window and model, and platform-reported ROAS usually double-counts across channels. Use platform ROAS to optimise within a channel and a blended figure (total revenue ÷ total spend) to judge the overall budget.

Should ROAS include ad spend in the margin?

No. Gross margin here is revenue minus cost of goods and fulfilment, before advertising. Ad spend is the denominator of ROAS, so including it in the margin would count it twice.

How does break-even ROAS change with returns and refunds?

Refunds reduce effective gross margin. If 8% of orders are refunded, multiply your margin by 0.92 before inverting it, and the break-even ROAS rises accordingly.