Free PPC Tool
ROAS target calculator
Enter your product price, cost of goods sold, monthly ad spend, conversion rate, and average CPC to calculate your break-even ROAS and the ROAS targets you need for 20% and 50% profit margins.
Campaign inputs
The average revenue per sale or order
Direct cost per unit sold (leave blank if service-based)
% of clicks that convert to a sale or lead
Your current or estimated average CPC
ROAS targets
Break-even ROAS
Revenue just covers ad spend
Target ROAS (20% profit margin)
Estimated monthly revenue: £5,000.00
Target ROAS (50% profit margin)
Estimated monthly revenue: £20,000.00
Current campaign estimates
Est. monthly clicks
1,333
Est. monthly conversions
27
Est. monthly revenue
£2,666.67
Est. current ROAS
1.33x
Gross margin per sale
£60.00
Gross margin %
60.0%
Disclaimer: ROAS targets are estimates based on the inputs provided. Actual results depend on campaign structure, bidding strategy, seasonality, and market competition.
Understanding ROAS
What is ROAS?
Return on Ad Spend (ROAS) measures how much revenue you generate for every pound spent on advertising. A ROAS of 4x means you earn £4 in revenue for every £1 you spend.
What is a good ROAS?
A 'good' ROAS depends entirely on your margins. A low-margin business may need 8x+ to be profitable, while a high-margin service business might profit at 2x. Always start from your break-even ROAS.
ROAS vs ROI
ROAS is a revenue metric — it doesn't account for costs of goods or overheads. ROI is a profitability metric. You can have a high ROAS but negative ROI if margins are too thin.
Not hitting your ROAS targets?
Our PPC specialists can audit your campaigns, restructure your ad groups, and implement bidding strategies designed to hit your target ROAS consistently.
