ROAS Calculator

ROAS (Return on Ad Spend) measures revenue earned per unit of ad spend — but it only shows one side of profitability. A high ROAS can still mask a loss if product costs are high, which is why knowing your break-even ROAS is the most important number to calculate first. Research by Tinuiti found that 34% of campaigns reporting high ROAS are actually unprofitable once product costs are factored in (Tinuiti E-Commerce Benchmark, 2023). While the industry average on Google Shopping sits at 6–9x ROAS, the correct benchmark for any specific campaign is its own break-even ROAS — not industry averages. A McKinsey survey found that 61% of marketers who measure with both ROAS and ROI reported better budget decisions than those tracking ROAS alone (McKinsey, 2023). This calculator combines your revenue, spend and cost ratio to surface true profitability, break-even point and net profit or loss in one view.

1. 1

   Enter your break-even ROAS as the minimum threshold in Google Ads' target ROAS bid strategy

2. 2

   If the campaign is at a loss, optimise the landing page and product page first — cutting budget should be the last resort

3. 3

   Compare ROAS across product categories or campaign types and shift budget to high-performing segments

4. 4

   Add both ROAS and ROI to monthly reports — tracking only ROAS creates a profitability blind spot