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Calculate your Google Ads Return on Ad Spend. Measure Search, Shopping, and Performance Max campaign profitability.
Total amount spent on advertising
Total revenue generated from ads
ROAS
5.0x
StrongProfit
$4,000.00
Cost per $1 Revenue
$0.20
Your ROAS of 5x means you earn $5 for every $1 spent on ads. This is a strong return - your campaigns are profitable.
Industry Benchmarks
This calculator provides estimates for informational purposes only.
Armitage tracks these metrics across all your campaigns, automatically. Get a free growth audit to see where you stand.
Get Your Free Growth AuditGoogle Ads ROAS measures the revenue generated per dollar spent across Google's advertising ecosystem - Search, Shopping, Display, YouTube, and Performance Max campaigns. It is the primary profitability metric for any business investing in Google advertising.
Google Ads provides a Conv. value/cost column that displays ROAS directly. But understanding the nuances across campaign types is what separates profitable accounts from money pits.
Google Ads ROAS = Conversion Value / Ad Spend
If your Google Ads account spent $8,000 last month and tracked $32,000 in conversion value, your ROAS is 4.0x. Google reports this as a percentage (400%) in some views and a ratio in others.
The accuracy of this number depends entirely on your conversion tracking setup. If you are not tracking revenue values - just counting conversions - your ROAS data is useless. Set up value-based conversion tracking before making any optimization decisions.
Different campaign types produce vastly different ROAS profiles:
Industry benchmarks for Google Ads ROAS:
Blended ROAS that combines branded and non-branded search is misleading. Your branded ROAS will always be higher. Segment them in reporting so you can see the real performance of your customer acquisition campaigns.
For Shopping and Performance Max, your product feed is everything. Include high-quality images, accurate titles with search terms, competitive pricing, and detailed product attributes. Brands that optimize their feed see 20-40% ROAS improvements.
Google's Target ROAS bid strategy uses machine learning to set bids for each auction. It requires at least 15 conversions in the past 30 days to work effectively. Set your target ROAS 10-20% below your actual ROAS initially, then tighten as the algorithm learns.
The average Google Ads account wastes 20-30% of spend on irrelevant search terms. Review your search terms report weekly. Build shared negative keyword lists and apply them across campaigns. This is the single easiest way to improve ROAS.
Higher Quality Scores reduce your cost per click while maintaining ad position. Focus on landing page relevance, expected CTR (write better ad copy), and ad relevance (match keywords to ad groups tightly). Moving from a Quality Score of 5 to 7 can reduce CPCs by 25-35%.
Google offers several attribution models that affect how ROAS is calculated. Data-driven attribution (DDA) is now the default, distributing credit across all touchpoints in the conversion path. Last-click attribution gives all credit to the final ad clicked before conversion. DDA typically shows lower ROAS on branded search and higher ROAS on prospecting campaigns compared to last-click.
Use this calculator to evaluate Google Ads campaign profitability, prepare reporting, or set Target ROAS bid strategies. Enter your Google Ads spend and conversion value to see your ROAS ratio with an industry-benchmarked verdict.
The average Google Ads ROAS is roughly 2x across all industries. Good performance means 4-6x for e-commerce Shopping campaigns, 8-15x for branded search, and 2-4x for non-branded search. Your target depends on your profit margins.
Set up value-based conversion tracking by passing revenue values with your conversion events. Then add the Conv. value/cost column to your Google Ads reporting view. Without revenue values, Google can only count conversions, not ROAS.
Performance Max runs across all Google channels including Display and YouTube, which have lower intent than Search. The blended ROAS includes cheap impression-based channels. Segment your reporting by network to see Search-only and Shopping-only performance.
Start with a Target ROAS 10-20% below your actual ROAS to give the algorithm room to learn and find conversions. Once it stabilizes after 2-3 weeks, gradually increase the target in 10-20% increments. Avoid drastic changes.
Add negative keywords to eliminate wasted spend, improve Quality Score to reduce CPCs, optimize your product feed for Shopping campaigns, and pause campaigns or ad groups with ROAS below your break-even threshold. Reinvest savings into top performers.
Branded search captures people who already know your brand. The ROAS is real revenue, but the advertising may not be the cause of those sales. Run brand lift studies or pause branded campaigns briefly to measure the incremental revenue they generate.
Armitage monitors your marketing metrics across every channel, every day. Get a free growth audit to see where you stand.
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