Business

Google Ads ROI Calculator

Calculate your true ROAS, break-even CPC, and net profit from Google Ads campaigns — before you spend another dollar.

Monthly Ad Budget ($) Total monthly Google Ads spend

Avg CPC — Cost Per Click ($) Industry avg: eComm $1–$3, SaaS $5–$15, Legal $20–$50

Conversion Rate (%) % of clicks that become customers. Avg: 2–5%

Avg Order / Lead Value ($) Revenue per conversion

COGS / Cost per Lead (%) % of order value that is your cost to deliver. 0% for pure margin leads.

Monthly Fixed Costs ($) Overhead, staff, tools — not including ad spend

Monthly Clicks

—

Monthly Conversions

—

Monthly Revenue

—

ROAS

—

Gross Profit

—

Net Profit

—

Break-Even ROAS

—

Break-Even CPC

—

How to Calculate Google Ads ROI

ROAS (Return on Ad Spend) tells you how many dollars of revenue you generate for every dollar spent on ads. But ROAS alone is misleading — you need to account for COGS and fixed costs to find your true net profit.

Monthly Clicks = Budget ÷ Avg CPC
Monthly Conversions = Clicks × Conversion Rate
Revenue = Conversions × Avg Order Value
Gross Profit = Revenue × (1 − COGS%)
Net Profit = Gross Profit − Ad Spend − Fixed Costs
ROAS = Revenue ÷ Ad Spend
Break-Even ROAS = 1 ÷ Gross Margin %
Break-Even CPC = (Order Value × Gross Margin%) × Conversion Rate

Google Ads Benchmarks by Industry

eCommerce — Avg CPC $0.88–$3.00, Conversion rate 1.5–4%, Target ROAS 400–800%
SaaS / B2B — Avg CPC $5–$15, Conversion rate 2–5%, Target ROAS 200–400%
Legal — Avg CPC $20–$50, Conversion rate 3–6%, High LTV offsets costs
Home Services — Avg CPC $6–$12, Conversion rate 5–10%, Repeat business is key

Frequently Asked Questions

What is a good ROAS for Google Ads?

A "good" ROAS depends on your margins. If your gross margin is 50%, you need at least a 2x ROAS (200%) just to break even on ad spend — before fixed costs. Most eCommerce businesses target 4x–8x ROAS (400–800%). The break-even ROAS formula is: 1 ÷ Gross Margin %. So a 30% margin business needs 3.3x ROAS to break even.

How do I calculate break-even CPC?

Break-even CPC = (Average Order Value × Gross Margin %) × Conversion Rate. For example: a $100 product with 60% margin and 3% conversion rate gives a break-even CPC of $100 × 0.60 × 0.03 = $1.80. Any CPC above $1.80 and you're losing money on ad spend before overhead.