Google Ads Profit Calculator – What ROAS Do You Really Need?
Your Google ROAS doesn't tell you what you earn. This calculator does: break-even, economic target ROAS and the range where your contribution after marketing is likely to be highest.
You don't have one ROAS. You have three.
Google Ads reports one ROAS. Your store earns with another. And your business goal requires a third. The Profit Calculator puts all three side by side:
ROAS measured by Google: the value in your Google Ads account
Economic ROAS: adjusted for VAT, returns and your tracking settings
Required ROAS: the value your target contribution margin demands
What is your goal?
Quick check
All values per order. The result updates instantly.
Country
What does your tracking pass to Google Ads?
Assumption – check your tracking: we calculate with gross values incl. VAT.
incl. VAT, as your customers pay
in % of the net merchandise value
share of the merchandise value that is returned
shipping, fulfilment, payment and returns in % of the merchandise value
in % of net revenue after returns
in % as shown in Google Ads, e.g. 450
Your result
Your key figure: 517%
Based on your inputs, Google Ads should reach at least around 517% in the long run so that 10% contribution margin remains after marketing.
All ROAS values as Google Ads measures them.
Break-even
372%
Below this you lose money.
economic 281% · CoS 26.9%
Target ROAS
517%
This is where you reach your target contribution margin.
economic 391% · CoS 19.3%
Profitable scaling range
406% – 517%
Between 406% and 517%, more budget can make economic sense even though ROAS falls.
economic 307% · CoS 24.6%
Recommended tROAS
Cannot be determined without budget data – safe starting value: 517%
for your goal: Maximum contribution margin in €
Margin before marketing: 35.6% · conversion factor Google to economic: 1.32
Our recommendation
Start with a tROAS of 517%. Use your budget curve to find the ROAS with the highest contribution margin.
Next step: First clarify what your tracking passes to Google Ads.
All inputs are part of the link. Copy the address to share the result.
Pro mode
Each section refines the same result above.
Core data
excl. VAT and shipping; empty = from the order value (€100.00)
Cost of goods and return rate come from the quick check.
Cost of goods and return rate come from the quick check.
default 80 %
what your customers pay for shipping, excl. VAT
in % of the shipping revenue
in % of net revenue after returns · default 3%
in % of net revenue after returns · empty = target margin + 5 points
Other variable costs
As long as no individual costs (shipping, fulfilment, payment, return costs) are set, the flat rate from the quick check applies.
in % of the gross amount · default 1.5%
default 0.25
default 0 %
warehouse, pick & pack, packaging
empty = return rate
return shipping, inspection, refurbishment
in % of the net merchandise value, e.g. commissions
e.g. agency or tool costs in % of the ad budget
| Item | Amount | Share |
|---|---|---|
| Revenue after returns (net) | €90.00 | 100.0% |
| Cost of goods | −€46.00 | 51.1% |
| Variable costs (flat rate) | −€12.00 | 13.3% |
| Contribution margin before marketing | €32.00 | 35.6% |
Advanced analysis
Google shows 500 % – how much of it actually reaches you?
Your Google Ads setting
Open the campaign → Settings → Bidding → activate "Set a target ROAS" → enter 517%. Without budget data, enter 517% as a safe starting value.
T1 · Gross or net?
T2 · Value before or after discount?
T3 · Shipping included in the conversion value?
T4 · Are returns and cancellations corrected in Google Ads?
Assumption for "Don't know": gross, after discount, shipping included, not corrected. Please check your tracking.
optional, for one period, e.g. last month
optional · what your customers paid for exactly these orders: incl. VAT and shipping, after discount, before returns
Google sees €119.00 per order, €90.00 remain economically. Conversion factor: 1.32.
Reviewed by the arboro SEA team · Last updated: October 2026
The Profit Calculator in three minutes
Why a good ROAS in Google Ads doesn't automatically mean profit, and how the calculator helps you find your real target value – for store owners and marketers.
Calculate your break-even ROAS
Break-even ROAS is the value below which advertising destroys contribution margin. It depends only on your contribution margin before marketing: break-even ROAS = 1 ÷ contribution margin ratio. At a 38 % contribution margin it is 263 %.
The calculator includes all variable costs per order: cost of goods, shipping, fulfilment, payment fees, returns and their handling. For a simple calculation from ad spend and revenue, use the ROAS Calculator.
Calculate your target ROAS (tROAS) for Google Ads
A profitable target ROAS does more than cover costs – it delivers the contribution margin you want after marketing: target ROAS = 1 ÷ (contribution margin ratio − target margin). The right value depends on your goal:
Maximum contribution in euros: determinable once budget data is available
Growth at minimum contribution: the lowest justifiable target ROAS
Efficiency and cash flow: a deliberately higher target ROAS
Why Google Ads sees a different ROAS
If your tracking passes gross values including VAT and returns are not corrected, Google sees more revenue than actually reaches you. The same store with a 38 % contribution margin and 15 % returns has a different break-even in Google Ads depending on tracking:
| Tracking | Break-even in Google Ads |
|---|---|
| net, returns corrected | 263 % |
| net, not corrected | 310 % |
| gross, corrected | 313 % |
| gross, not corrected | 369 % |
Anyone who enters 263 % as a target while Google measures gross values without return corrections loses money on every order. The calculator shows whether your tracking measures correctly – and server-side tracking closes the most common gaps.
How much budget makes economic sense?
More budget lowers ROAS – that is normal. What matters is whether the last additional euro of advertising still brings in contribution margin. From two to six months of your data, the calculator models your budget curve and shows the range with the highest contribution after marketing, always with an uncertainty range. If the data is too thin, the calculator says so instead of producing false precision.
Product groups and new customers
High-margin products can carry a lower target ROAS than low-margin items. The calculator shows whether your product groups run economically in a shared campaign. For new customer acquisition, it uses the contribution margin from repeat purchases, not revenue.
Frequently asked questions about the Profit Calculator
Break-even ROAS is the lowest ROAS at which advertising just recovers its costs through contribution margin. Below it, every order from Google Ads costs money.
How it is calculated:
Determine contribution before marketing:
Revenue after discounts and returns minus cost of goods, shipping, fulfilment, payment and return handling.
Take the inverse:
Break-even ROAS = 1 ÷ contribution margin ratio. At 38 % that is 263 %.
Translate it into the Google value:
Depending on tracking, the same break-even is higher in Google Ads, for example 369 %.
Derive your target ROAS from your contribution margin and target margin, not from industry benchmarks.
In three steps:
Determine your contribution margin ratio:
For example 38 % before marketing.
Subtract your target margin:
If 10 % should remain after marketing: 1 ÷ (38 % − 10 %) = 358 % economically.
Translate it to your tracking:
If Google measures gross values without return corrections, that equals around 500 % in Google Ads.
Because Google often sees different revenue than actually reaches you.
The most common reasons:
Gross values:
Tracking passes revenue including VAT.
Returns:
Refunded orders are not corrected afterwards.
Discounts and shipping:
The value ignores discounts or adds shipping costs.
Attribution:
Google credits purchases to an ad even when other channels were involved.
Contribution after marketing, not accounting profit. Fixed costs such as staff, rent or software are not included; your target margin has to cover them.
Included per order:
Revenue:
after discounts and returns, excluding VAT
Variable costs:
cost of goods, shipping, fulfilment, payment fees, return handling
Marketing costs:
ad budget plus costs that depend on it, such as a percentage-based agency fee
Yes, but only as precisely as your data allows. From two to six months with different budgets, the calculator models how much ROAS falls as budget rises.
What you get:
Budget range:
the modelled range with the highest contribution after marketing, with an uncertainty range
Budget signal:
scale, reduce or no clear statement
Honest limits:
With too few or too similar data points, the calculator shows no budget figure.
ROAS measures revenue per euro of advertising, POAS contribution margin per euro of advertising, and MER the effect of all marketing on total revenue.
The three metrics at a glance:
ROAS (return on ad spend):
Revenue ÷ ad spend of one channel. Quickly available, but blind to costs and margin.
POAS (profit on ad spend):
Contribution margin ÷ ad spend. From 1.0, advertising makes money – regardless of industry or margin.
MER (marketing efficiency ratio):
Total revenue ÷ marketing costs of all channels. Shows whether advertising grows the store as a whole, no matter which channel claims the sale.
The Profit Calculator combines all three: it translates your ROAS into contribution margin and checks in the MER module whether additional budget shows up in total revenue.
Yes. You see all results instantly, without sign-up, right in your browser. Your inputs stay in your browser and can be shared as a link, for example with your management or your agency.
Want to steer Google Ads by contribution margin?
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