Clickem ROAS Calculator
Find out whether your ads actually make money, and what target ROAS to set in Google Ads.
How to use the ROAS calculator
Enter your ad spend and the revenue those ads brought in for the same period. In Google Ads, revenue is the Conv. value column. The calculator shows your ROAS straight away.
Add your gross margin to see the part that matters most: whether that ROAS is profitable. Add your average order value to see what each order costs you and the most you can afford to pay per order.
Example: you spend $1,000 and get $3,000 in revenue. That’s a 3x ROAS (300%). At a 40% margin, your break-even ROAS is 2.5x, so you’re profitable, with $200 left after ad spend.
ROAS vs. break-even ROAS
ROAS tells you how much revenue each dollar of ad spend brings in:
ROAS = Revenue from ads ÷ Ad spend
But revenue isn’t profit. Before you pay for ads, you’ve already paid for the product, shipping and payment fees. Your break-even ROAS is the point where ad spend eats up all the profit from your sales:
Break-even ROAS = 1 ÷ Gross margin
The lower your margin, the higher the ROAS you need just to break even:
| Gross margin | Break-even ROAS | Google Ads tROAS |
|---|---|---|
| 20% | 5.0x | 500% |
| 30% | 3.33x | 333% |
| 40% | 2.5x | 250% |
| 50% | 2.0x | 200% |
| 60% | 1.67x | 167% |
A store with a 20% margin loses money at a 4x ROAS. A store with a 60% margin makes good money at 2x. The same ROAS can mean very different things.
What is a good ROAS?
There’s no universal number. A good ROAS is one that’s comfortably above your break-even ROAS. That’s why rules like “aim for 4x” are misleading: for some businesses 4x is a loss, and for others it means they’re spending too little and missing sales.
Start with your break-even ROAS from the calculator. Anything above it is profit. How far above it you aim depends on your goal. A higher target means more profit per sale but fewer sales. A target closer to break-even means more volume at a thinner margin.
Setting your target ROAS in Google Ads
Google Ads enters target ROAS as a percentage. A 4x ROAS is 400%, and a 2.5x ROAS is 250%. The calculator shows your minimum tROAS in that format, so you can copy it straight into the bid strategy.
Three things to check before you trust your ROAS:
- Only purchases should count as conversions. If add-to-carts or checkouts are set as primary conversions, Google Ads reports a ROAS far higher than reality.
- Compare the same period. Spend and revenue must come from the same date range.
- Start near your current ROAS. Setting a target far above what the campaign achieves today can choke its traffic. Raise it step by step.
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