Google Ads math

Google Ads ROAS Calculator

The ROAS your Google Shopping and Search campaigns have to clear before Target ROAS bidding starts spending at a loss.

Break-even ROAS = selling price ÷ what you keep per order. Google takes no cut of the sale — the only ad cost is the spend itself — so your break-even is set entirely by product margin. A $55 product with $17 COGS, $1.90 processing, $5 shipping and $3 fulfillment keeps about $28, a break-even ROAS near 2.0×. Feed that as the floor for your Target ROAS (tROAS) bid strategy — Google wants it as a percentage, so 2.0× is 200% — then set your actual target above it to keep margin. Bid below the floor and Smart Bidding optimizes you straight into losses. Enter your numbers for the exact ceiling.

Google Ads ROAS Calculator — your per-order numbers

Break-even ROAS

1.96×

Break-even ACOS

51.1%

Target ROAS

3.22×

Margin / order

$28.10

At 51.1% gross margin, spend up to 51.1% of revenue on ads to break even.

Estimate only. Figures assume the costs you entered are complete and per-order; they exclude returns, overhead, and taxes.

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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.

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