SellersCalc

Ad math

Target ROAS Calculator

Work the bid target backwards from the profit you want to keep — instead of borrowing a ROAS goal from a blog post.

Target ROAS = price ÷ (per-order profit − desired profit). A $60 product with $33 of per-order costs leaves $27 of pre-ad profit; break-even ROAS is $60 ÷ $27 = 2.22×. To also keep a 15% margin ($9 per order), only $18 remains for ads — so the target ROAS is $60 ÷ $18 = 3.33×. Feed that number into Google or Meta as your tROAS bid target and the algorithm optimizes toward your real economics. Enter price, costs, and target margin to get all three numbers.

Target ROAS Calculator — your numbers

Target ROAS

3.33×

Break-even ROAS

2.22×

Allowable ad spend per order

$18.00

Estimate only. Results reflect exactly the numbers you enter — verify against your own accounting before making pricing decisions.

Embed this calculator on your site — free →

Worked examples

Keep 15% after ads

Selling price $60.00
Per-order costs $33.00
Target margin after ads 15%
Target ROAS 3.33×
Break-even ROAS 2.22×
Allowable ad spend per order $18.00

Break-even at 2.22×; keeping 15 points of margin pushes the target to 3.33×.

Lean product, modest goal

Selling price $40.00
Per-order costs $26.00
Target margin after ads 10%
Target ROAS 4.00×
Break-even ROAS 2.86×
Allowable ad spend per order $10.00

Only $14 of pre-ad profit — a 10% margin goal leaves $10 for ads and demands 4× ROAS.

Frequently asked questions

What is the difference between target ROAS and break-even ROAS?

Break-even ROAS (price ÷ pre-ad profit) is where a paid sale earns exactly zero — a floor, not a goal. Target ROAS adds the profit you intend to keep: reserve part of the per-order profit as margin and only the remainder may go to ads, which raises the required ROAS. Bidding at break-even means working for free.

What costs belong in per-order costs?

Everything that scales with one order except ads: product cost, inbound freight allocated per unit, packaging, pick-and-pack or FBA fees, payment or marketplace fees, and a returns allowance if returns are material. The more complete this figure, the more honest your target — a flattering cost figure produces a target ROAS that quietly loses money.

How do I use the target ROAS in Google Ads or Meta?

Enter it as the tROAS bid strategy target in Google Ads (as a percentage — 3.33× is 333%) or as a ROAS goal on Meta campaigns using the highest-value or ROAS-goal bid strategies. Give the algorithm 30–50 conversions before judging it, and expect delivered ROAS to hover around, not exactly on, the target.

Should new products use a lower target ROAS?

Often yes, deliberately. Early on you may accept break-even or slightly below to buy data, reviews, and organic rank — that is an investment with a time limit, not a strategy. Decide the ceiling you will tolerate and the date you will re-evaluate before launching, then raise the target toward the profitable number as the product matures.

Related calculators

Part of the Advertising & ROAS collection.