ROAS Calculator — Return on Ad Spend
Calculate your ROAS. See your return on ad spend ratio, net profit, and ROI instantly.
ROAS Formula
ROAS = Ad Revenue / Ad Spend
Target ROAS = 1 / Gross Profit Margin. At 25% margin, break-even ROAS = 4x, must be > 4x to profit.
How to Evaluate ROAS?
ROAS alone is not a sufficient metric — it should always be interpreted together with your gross profit margin. The same 3x ROAS can be profitable for a product with 60% margin while causing a loss for one with 20% margin. That's why target ROAS must be calculated separately for each campaign.
| Industry | Avg ROAS | Target ROAS |
|---|---|---|
| E-commerce (Fashion) | 3–5x | 4–6x |
| E-commerce (Electronics) | 6–10x | 8–12x |
| B2B SaaS | 3–8x | 5–10x |
| Beauty & Cosmetics | 4–7x | 5–8x |
| Food & Grocery | 5–9x | 6–10x |
When using the tROAS (Target ROAS) bidding strategy in Google Ads, you need at least 30 days of conversion data. tROAS campaigns launched with insufficient data can waste budget. In the first phase, collect data with the Maximize Conversions strategy, then switch to tROAS.