What is a good ROAS for Google Ads or Meta Ads?

A good ROAS depends heavily on gross margin. For a business with a 75% gross margin, a 3.0x to 4.0x ROAS is highly profitable. However, if margin is 25%, a 4.0x ROAS only breaks even.

How do you calculate break-even ROAS?

Break-even ROAS equals 1 divided by gross margin decimal. For example, if gross margin is 50% (0.50), break-even ROAS is 1 / 0.50 = 2.0x.

What is the difference between ROAS and ROI?

ROAS measures gross revenue generated per ad dollar spent (Revenue / Ad Spend). ROI measures net profit generated relative to total campaign costs ((Net Profit / Total Costs) x 100).

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Campaign ROAS & Budget Calculator

Estimate campaign ROAS, profit, break-even targets, daily budget, clicks, conversions, and revenue needed before you launch. No login required.

Quick Campaign ROAS Calculator

Calculate Return on Ad Spend and net profit for e-commerce or digital campaigns.

Ad Spend ($) *Total advertising cost

Attributed Revenue ($) *Total sales from campaign

ROAS & Profit Analysis

4.00xProfitable

Break-Even ROAS1.33x

Net Profit$4,500

Campaign ROI150.0%

Gross Profit$7,500

Profit Margin45.0%

Total Ad Spend$2,500

Revenue$10,000

Campaign Summary

At a 4.00x ROAS, your campaign is projected to generate $10,000 in revenue and $4,500 in net profit after $3,000 in total costs.

ROAS & Budget Guide

How to plan campaign budgets with ROAS

Use these examples to understand ROAS, ROI, break-even targets, daily budgets, and campaign profitability before you spend.

1. What is ROAS?

Return on Ad Spend (ROAS) measures the gross revenue generated for every dollar spent on advertising. For example, if you spend $1,000 on Google Ads and generate $4,000 in attributed revenue, your ROAS is 4.0x (or 400%).

2. How to Calculate ROAS

The formula for ROAS is simple: ROAS = Attributed Revenue / Ad Spend. While easy to calculate, high ROAS does not automatically guarantee profit if gross margins are thin.

3. ROAS vs. ROI

ROAS looks strictly at gross revenue vs ad spend. ROI (Return on Investment) accounts for gross profit margin, agency fees, shipping, and fulfillment costs to show net campaign profitability.

4. What is Break-Even ROAS?

Break-even ROAS is the minimum return required to cover cost of goods sold and variable fulfillment. The formula is Break-Even ROAS = 1 / Gross Margin %. If your gross margin is 50%, your break-even ROAS is 2.0x.

E-commerce vs. Lead Generation Campaign Budgeting

E-commerce Example

A store selling $100 products with 70% gross margin ($70 profit before ads) and $10 shipping/fulfillment has a contribution margin of $60 per order. Their break-even CPA is $60. To achieve a $20 net profit per order, target CPA must be $40 (2.5x target ROAS).

B2B Lead Gen / SaaS Example

A SaaS company with a $3,000 Annual Contract Value (ACV) and 10% lead-to-customer close rate needs 10 leads per closed deal. At a $150 Cost Per Lead (CPL), Customer Acquisition Cost (CAC) is $1,500, yielding a 2.0x pipeline-to-spend ratio.

Frequently Asked Questions

What is a good target ROAS for Google Ads vs. Meta Ads?

Target ROAS depends on gross margin and business model. High-margin SaaS products (80%+ margin) can scale comfortably at 2.0x–2.5x ROAS, whereas low-margin retail products (30% margin) need 3.5x–4.5x ROAS to remain profitable.

Does this calculator store my financial inputs or company data?

No. You can use the calculator without creating an account, and BudgetRelio does not save the numbers you enter.

How does daily budget pacing work?

Ad platforms may spend unevenly from day to day. Use the daily budget as a planning estimate, then monitor actual spend inside the platform you use.