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Google Shopping ROAS Calculator

Plug in spend, conversion rate, average order value and margin, get ROAS, profit and break-even targets.

Google Ads Microsoft Ads Meta Ads
ROAS
1.70x
Break-even at 2.22x (based on 45% margin)
POAS (profit on ad spend)
0.77x
Gross profit ÷ ad spend
Revenue
$8,500
100 conversions
Gross profit
$3,825
After 45% margin
Net contribution after ad spend
$-1,175
Loss-making — gross profit is below ad spend. Either lift conversion rate, AOV or margin, or cut CPC.
CPC
$1.25
Cost per click
CPA
$50.00
Cost per acquisition
Formulas: Revenue = Clicks × CR × AOV. Gross Profit = Revenue × Margin. ROAS = Revenue / Spend. POAS = Gross Profit / Spend. Break-even ROAS = 1 / Margin.

About this tool

Plan campaigns or post-mortem performance. Computes ROAS, true profit (after COGS), net contribution after ad spend, and how a CTR or CR uplift would change the picture.

ROAS vs POAS

ROAS (Return On Ad Spend) is revenue divided by ad spend. It's the most common metric — and the most misleading. A 5× ROAS sounds great until you remember 60% of that revenue is cost of goods. POAS (Profit On Ad Spend) uses gross profit instead of revenue, so it tells you whether the channel is actually making you money.

Break-even ROAS

Break-even ROAS = 1 / your gross margin. At 40% margin that's 2.5× — any ROAS below 2.5× loses money. Set target ROAS above break-even to actually grow contribution.

Frequently asked questions

What is ROAS in Google Shopping? +

ROAS (Return On Ad Spend) is revenue earned per dollar of ad spend. A 4x ROAS means $4 of revenue for every $1 spent. It's the headline metric every Shopping campaign reports, but it ignores margin, so it can be misleading.

What's a good ROAS for Google Shopping? +

Depends entirely on margin. With 50% gross margin, break-even ROAS is 2x; healthy is 3-5x. With 30% margin, break-even is 3.3x and healthy is 4-7x. Use this calculator to compute your specific break-even before benchmarking.

What's the difference between ROAS and POAS? +

ROAS is revenue ÷ spend. POAS (Profit On Ad Spend) is gross profit ÷ spend, the same equation with cost of goods stripped out of revenue. POAS gives a much more honest read on whether the channel is actually making you money.

Why does the platform-reported ROAS look better than my real ROAS? +

Google Ads claims credit for any conversion it touched, including view-throughs and last-click overlaps with Meta and email. The true blended ROAS is your total store revenue divided by total ad spend (see our MER Calculator), and it's usually 30-60% lower than platform-reported numbers.

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