PPC / Google Ads ROI Calculator
Calculate the ROI and ROAS of your pay-per-click advertising campaigns. Find your break-even CPC, cost per acquisition, and whether your ad spend is profitable.
📊 Advertising💼 PPC ROI = (Revenue − Ad Spend) / Ad Spend × 100
Monthly ad spend ($)
Monthly revenue from ads ($)
Average order value ($)
Gross margin (%)
Please enter valid values.
Formula & Reference
| Variable | Formula | Units |
|---|---|---|
| PPC / Google Ads ROI Calculator | PPC ROI = (Revenue − Ad Spend) / Ad Spend × 100 | % |
Step-by-Step Examples
Example 1
Google Shopping
$3,000 spend, $15,000 revenue, $120 AOV, 45% margin.
- ROAS: 5x | Orders: 125
- CPA: $24 | Gross profit: $6,750
- Net profit: $6,750-$3,000 = $3,750
- Break-even ROAS: 100/45 = 2.22x | Currently 5x — strong!
✓ 5x ROAS, $3,750 net profit
Example 2
Search Campaign
$5,000 spend, $12,000 revenue, $200 AOV, 60% margin.
- ROAS: 2.4x | Break-even at 1.67x
- Net profit: ($12k×0.60)-$5k = $2,200
✓ 2.4x ROAS, $2,200 net profit
Example 3
Unprofitable Campaign
$4,000 spend, $6,000 revenue, $100 AOV, 40% margin.
- ROAS: 1.5x | Break-even needs: 2.5x
- Gross profit: $2,400 - Spend $4,000 = -$1,600 net loss
- Pause or restructure this campaign
✓ 1.5x ROAS, -$1,600 net loss
Real-World Applications
PPC Managers
Evaluate campaign profitability beyond surface ROAS metrics.
E-commerce
Make data-driven decisions on ad budget allocation.
Performance Marketing
Track true net profit after accounting for gross margin.
Reporting
Present PPC results in business profit terms, not just ad metrics.
Common Mistakes to Avoid
⚠️
Using ROAS without accounting for margin
A 3x ROAS is profitable at 50% margin but losing money at 25% margin. Always calculate break-even ROAS from your specific margin.
⚠️
Excluding brand search from ROI calculations
Brand keywords often have extremely high ROAS but represent traffic you'd get organically anyway. Segment brand vs non-brand for honest ROI measurement.
⚠️
Short attribution windows for long sales cycles
B2B with 90-day sales cycles needs attribution windows of 90+ days. Default 30-day windows miss most conversions in longer-cycle businesses.
Frequently Asked Questions
What is ROAS and how is it different from ROI? ▾
ROAS (Return on Ad Spend) = Revenue / Ad Spend. ROI accounts for the cost of goods: ROI = (Revenue×Margin − Ad Spend) / Ad Spend. A 3x ROAS with 30% margin is break-even.
What is break-even ROAS? ▾
Break-even ROAS = 1 / Gross Margin. At 40% margin: 1/0.40 = 2.5x ROAS. Below this, you lose money on ads even if revenue grows.
Google Ads vs Facebook Ads — which delivers better ROI? ▾
Highly dependent on your business. Google captures intent (people searching for your product). Facebook/Instagram creates demand (reaching people before they search). E-commerce often favors Facebook for new products, Google for established demand.
What bidding strategy maximizes ROI? ▾
Target ROAS bidding works well when you have 30+ conversions/month. Target CPA bidding is better for lead generation. Manual CPC gives most control at lower budgets.
How do I improve low ROAS? ▾
Improve landing page conversion rate, increase AOV through upsells, tighten audience targeting, improve ad relevance score, and test new ad creative.