Target ROAS Calculator for Minimum ROAS and Ad Budget
How to Calculate Minimum ROAS and Ad Budget Goal with the Target ROAS Calculator
Calculate break-even and target ROAS from gross margin, operating costs, and profit buffer. Translate revenue goals into a practical advertising budget.
Formula
Target ROAS = required revenue / available ad spend
How to use the result
Derive the target from contribution margin and desired profit instead of using a platform average.
Keep revenue, costs, and ad spend in the same currency and attribution period. Inputs and calculations stay in this browser.
Determine the minimum ROAS needed for your ads to be profitable. Set realistic advertising goals based on your actual margins.
Calculate Minimum ROAS
ROAS for Target Profit
Full Cost Analysis
Ad Budget from ROAS Goal
Average ROAS by Platform
Google Search
4-8x
Google Shopping
3-6x
Facebook/Meta
2-5x
TikTok
2-4x
Amazon PPC
3-7x
2-5x
Understanding ROAS Goals
Break-Even ROAS Formula
Break-Even ROAS = 1 ÷ Profit Margin. If your margin is 25%, you need 4x ROAS to break even.
Why Add a Buffer?
Always target 20-30% above break-even to account for fluctuations, returns, and maintain profitability.
Key Considerations
- Include ALL costs: product, shipping, fees, overhead
- Factor in returns and refund rates
- Consider customer lifetime value for aggressive targets
- Seasonal variations may require adjusted targets