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Google Ads ROAS calculator

ROAS (return on ad spend) is the revenue your ads brought in divided by what you spent on them. A ROAS of 4 means $4 of revenue for every $1 of ad spend. Whether that's profitable depends on your margin — add it below to see your break-even ROAS.

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Enter ad spend (above zero) and revenue to see your ROAS.

How ROAS is calculated

  1. ROAS = revenue from ads ÷ ad spend.
  2. Break-even ROAS = 1 ÷ (profit margin ÷ 100). Below this, ads cost more than the profit they bring.
  3. Profit after ad costs = revenue × margin − ad spend.

Example

$2,000 of ad spend bringing in $8,000 of revenue, at a 40% margin:

Example numbers are for illustration, not benchmarks.

  • ROAS = 8,000 ÷ 2,000 = 4.0
  • Break-even ROAS = 1 ÷ 0.40 = 2.5
  • Profit after ad costs = 8,000 × 0.40 − 2,000 = $1,200

Is my ROAS good?

A ROAS is good if it's above your own break-even ROAS with room for other costs. There's no universal 'good' number, because margins differ.

Revenue in Google Ads is only as accurate as your conversion values. If tracking doesn't pass the real sale value, use revenue from your own sales records instead.

Want this calculated from your actual Google Ads account?

Claritad connects to Google Ads with read-only access to start, analyzes your real campaigns, searches and conversion tracking, and shows you what needs attention in plain English. Nothing in your account changes unless you approve it.

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Limitations

  • Lead-generation businesses often don't have revenue in Google Ads; use cost per lead instead (see the budget calculator).
  • ROAS ignores customer lifetime value — a first sale may lead to repeat business.

Related guides and tools

Sources

Last updated · Written by the Claritad team (Kyle Edward Gilligan LLC). Claritad is independent software and is not affiliated with or endorsed by Google.