Google Ads budget calculator
Estimate the monthly budget, cost per lead and customers you can expect for your industry.
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Enter your price and costs to find your break-even ROAS, the most you can pay per sale and the profit your ads make at the ROAS you get today.
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Quick answer
ROAS (return on ad spend) is the revenue from your ads divided by what you spent on them. If you spend $1,000 and the ads bring $4,000 in revenue, your ROAS is 4, often written as 4x or 400%. To know if that is profitable, compare it with your break-even ROAS, which depends on your profit margin.
How it works
Average order value, product cost, shipping and payment fees.
The ROAS where ads stop losing money and the maximum cost per sale.
See the profit or loss per sale and per $1,000 of ad spend.
FAQ
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Google AdsThe return on ad spend where the profit from a sale exactly pays for the ads. It is 1 divided by your profit margin: at a 25% margin you need a 4× ROAS just to break even.
Only for customer acquisition you can win back later through repeat purchases. For most stores the target should sit above break-even so ads make a profit on the first order.
Ad platforms report revenue, not profit, and can double-count sales. That is why a break-even target based on your margins matters more than the ROAS number alone.
It depends on your margins. A store with a 25% margin breaks even at 4x ROAS (1 divided by 0.25), while a 50% margin breaks even at 2x. Work out your break-even ROAS first, then set your target above it.
ROAS compares revenue with ad spend only. ROI compares profit with your total investment, including product costs, fees and other expenses. A campaign can have a high ROAS and still lose money if margins are thin.
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