Target ROAS Calculator

Target ROAS = Break-Even ROAS × (1 + Desired Profit %). First calculate your break-even ROAS (1 / profit margin). For example, with 40% margin, break-even is 2.5. For 20% profit on ad spend, target = 2.5 × 1.2 = 3.0. In Google Ads, enter this as 300%.

Start with your historical ROAS or slightly below it. If your campaigns average 350% ROAS, start with 300-350% target. Setting too high (like 600% when you get 350%) will severely limit delivery. Google needs 15+ conversions in 30 days and recommends 4 weeks of data before setting tROAS.

Break-Even ROAS is the minimum ROAS to cover costs with zero profit. Target ROAS is the ROAS you want to achieve for actual profit. Target ROAS should always be higher than break-even ROAS. The gap between them is your profit margin on ad spend.

Your target may be too aggressive. If you set 500% ROAS but the market can only support 300%, Google cannot find enough clicks at that efficiency. Lower your target gradually (10-20% at a time) until spending resumes. Also ensure you have enough conversion data (15+ in 30 days).

Use Maximize Conversions when starting out or when volume matters more than efficiency. Switch to Target ROAS once you have consistent conversion data (30+ conversions/month) and want to maintain profitability while scaling. Target ROAS gives more control over efficiency.

CPA = Average Order Value / ROAS. If your AOV is $50 and target ROAS is 4.0, then target CPA = $50 / 4 = $12.50. This means you can spend up to $12.50 to acquire a customer who spends $50. Use CPA targeting when you have consistent AOV.

Most businesses target 20-30% profit on ad spend after all costs. At 20% profit: Target ROAS = Break-Even × 1.2. At 30% profit: Target ROAS = Break-Even × 1.3. Higher margins are better but may limit scale. Find the balance between profit margin and volume.

Allow 2-4 weeks after any change for the algorithm to learn. Do not make frequent adjustments. Review weekly performance but only adjust monthly unless performance is significantly off. Small fluctuations are normal - focus on 30-day trends.

Target ROAS works best for Shopping, Search, and Performance Max campaigns with purchase conversions. It is less effective for lead gen (use Target CPA instead) or brand awareness campaigns. You need consistent conversion values for tROAS to optimize effectively.