Google Ads fees in this calculation
Presets reflect typical Google Ads economics (verified 2026-07-23) — adjust every field to your actual numbers. Estimates only.
| Payment processing Card rate — Google takes nothing from the sale itself | ~2.9% + 30¢ |
| Shipping Whatever your label + packaging cost per order | merchant-paid |
| Fulfillment / pick-pack 3PL or in-house handling; $0 if you self-fulfil | $3–$6 typical |
Worked examples
Typical Shopping product
| Selling price | $55.00 |
| All per-order costs | $26.90 |
| Contribution margin | $28.10 |
| Break-even ROAS | 1.96× |
About $28 kept — a 2.0× floor; set tROAS above 200% to actually profit.
Thin margin, competitive Search keyword
| Selling price | $30.00 |
| All per-order costs | $21.17 |
| Contribution margin | $8.83 |
| Break-even ROAS | 3.40× |
Only ~$8.83 kept — a 3.4× floor few cold Search campaigns can clear.
Break-even ROAS by margin — quick reference
| Gross margin (after fees) | Break-even ROAS |
| 20% | 5.00× |
| 25% | 4.00× |
| 33% | 3.03× |
| 40% | 2.50× |
| 50% | 2.00× |
| 60% | 1.67× |
Frequently asked questions
What is a good ROAS for Google Ads?
Any ROAS above your break-even. There is no universal target: a 50%-margin product breaks even at 2.0× and profits at 3×, while a 25%-margin product needs 4× just to tread water. Google Shopping usually clears a higher ROAS than non-brand Search because intent is stronger. Calculate your own floor, then judge campaigns against it, not a blog benchmark.
How do I turn my break-even into a Target ROAS (tROAS) bid?
Google Ads takes tROAS as a percentage: a 2.0× break-even is 200%. Never bid at the break-even itself — that is working for free. Set the target above the floor by the margin you want to keep, give Smart Bidding 30–50 conversions before judging it, and expect delivered ROAS to hover around, not exactly on, the target.
Is break-even ROAS different for Shopping and Search?
The break-even math is identical — it is set by your margin, not the campaign type. What differs is how easily each clears it: Shopping and brand Search convert warm intent and beat the floor readily, while broad non-brand Search on cold traffic often cannot. Same floor, different odds of hitting it.
Does Google Ads take a fee from each sale like Amazon?
No. Unlike a marketplace, Google charges only for clicks or impressions — it never takes a percentage of the order. That is why your break-even ROAS on Google is pure product economics: COGS, shipping, processing and fulfillment, with no referral fee stacked on top.