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How to calculate ROAS: the formula, your break-even ROAS, and how Google and Meta report it

· 14 min read · Tracking and analytics

Short answer: ROAS (return on ad spend) is the revenue your ads brought in divided by what you spent on them: ROAS = ad revenue ÷ ad spend. Spend $1,000 and get $4,000 in sales, and your ROAS is 4, often written 4:1, 4x or 400%. Google Ads shows the same number as Conv. value / cost, and its Target ROAS bidding uses the percentage (500% means $5 of conversion value per $1 spent). Meta writes it as a decimal: a ROAS goal of 1.100 means about $110 in purchases per $100. ROAS alone doesn't tell you whether you made money. For that, compare it with your break-even ROAS, which is 1 divided by your profit margin before ad costs. And because each platform counts sales its own way, it helps to compare ROAS across Google, Meta and TikTok in one table with one set of definitions.

The ROAS formula

ROAS = revenue attributed to ads ÷ ad spend

Three ways to write the same result:

  • $4,000 — Spend: $1,000; Ratio: 4:1; Multiple: 4x; Percentage: 400%
  • $1,500 — Spend: $1,000; Ratio: 1.5:1; Multiple: 1.5x; Percentage: 150%
  • $800 — Spend: $1,000; Ratio: 0.8:1; Multiple: 0.8x; Percentage: 80%

To turn a ratio into a percentage, multiply by 100. That is the whole difference between "how to calculate ROAS ratio" and "how to calculate ROAS percentage": same calculation, different notation.

Two things decide whether the number is meaningful:

  • Which revenue. Use the revenue the platform attributes to your ads, for the same period as the spend. Decide whether it includes tax and shipping, and stick to that choice; otherwise ROAS jumps when nothing really changed.
  • Which spend. Media cost only, in the same currency. Agency fees and tools are real costs, but leave them out of ROAS and account for them in profit (more on that below).

How to calculate ROAS in Google Ads

You don't have to calculate it by hand. Google Ads has a column for it:

  • Conv. value is the sum of conversion values for your "Conversions", meaning your primary conversion actions. Secondary actions appear under "All conversions" instead.
  • Conv. value / cost is, in Google's words, an estimate of your return on investment: total conversion value divided by the total cost of ad interactions. That is your ROAS as a ratio.

Google's Target ROAS help page gives the conversion: multiply Conv. value / cost by 100 to get the percentage. Its example is a shoe store that wants $5 in sales for each $1 spent: $5 ÷ $1 × 100% = 500% target ROAS.

Before you trust the column, check three things Google documents:

  1. Conversion values must be set. Without values, Google counts conversions but can't calculate a return. Target ROAS bidding requires conversion values, and for Search and Shopping campaigns at least 15 conversions in the past 30 days.
  2. Reporting is by click date. The main conversion columns are calculated by the time of the ad click, not the time of the purchase. Recent days look worse until late conversions arrive. Google offers separate "by conv. time" columns.
  3. Conversions can be fractions. With data-driven attribution, credit for one sale can be split across several clicks, so you'll see values like 0.33 or 0.50.

If you set a Target ROAS, Google says to report conversion values for 4 weeks or 1–2 conversion cycles, whichever is longer, and warns that a target set too high can limit how much traffic your ads get. Conversion value only works if tracking is set up correctly, so that comes first.

How to calculate ROAS in Meta Ads Manager

Meta uses the same formula but writes ROAS as a decimal ratio. In Meta's own example for its ROAS goal bid strategy, if you want a $100 budget to produce about $110 in purchases (a 110% return), you set the ROAS goal at 1.100. A ROAS of 4 on Meta is the same as 400% on Google.

Points that matter when you read Meta's number:

  • Purchase value comes from your tracking. Meta's ROAS goal needs a working Meta Pixel or Meta SDK tracking conversion events. If the pixel sends the wrong value (for example, a fixed value or a subtotal without discounts), ROAS is wrong.
  • Attribution decides what counts. Purchases on your website are attributed to an ad if they happened within a set number of days after someone viewed or clicked it, based on the ad set's attribution setting. Change the setting and the same campaign shows a different ROAS.
  • Judge on weekly averages. Meta says day-to-day ROAS naturally fluctuates, recommends evaluating on weekly averages and waiting at least 7 days after any change. It also recommends 50–100 or more weekly conversions for its goal-based bidding to work well.

How to calculate your break-even ROAS

This is the step most guides skip, and the one that answers "what is a good ROAS". A good ROAS is one above your break-even point, not an industry average.

Break-even ROAS = 1 ÷ profit margin before ad costs

Profit margin before ad costs = (selling price − product cost − shipping − payment and platform fees) ÷ selling price.

Example (assumptions):

  • Average order: $80
  • Product cost $32, shipping $8, payment fees $2.40 → variable costs $42.40
  • Margin before ads = ($80 − $42.40) ÷ $80 = 47%
  • Break-even ROAS = 1 ÷ 0.47 ≈ 2.13 (213%)

Below 2.13, every sale loses money once you've paid for the ad. At exactly 2.13, ads pay for themselves and nothing more. Above it, you're making a profit on the first order. A shop with 25% margins needs a ROAS of 4 just to break even; a service with 80% margins breaks even at 1.25. That is why the same ROAS can be excellent for one business and a loss for another.

You can also work backwards to a maximum cost per sale: with an $80 order and $37.60 left after variable costs, you can pay up to $37.60 in ads per sale. Our guide on how much does google ads cost shows how to estimate cost per sale before you spend.

Repeat customers change the picture. If buyers come back, first-order ROAS can be below break-even and the customer still profitable. Use your own repeat-purchase data, not a guess.

ROAS vs ROI

  • ROAS = revenue ÷ ad spend. It measures how much revenue each ad dollar brings in.
  • ROI = (revenue − all costs) ÷ all costs, where all costs include product cost, shipping, fees, ad spend and anything else you paid, such as an agency or tools. It measures whether you made money.

A campaign with a ROAS of 3 can have a negative ROI if your margins are thin. Use ROAS to compare campaigns and set bidding targets; use profit to decide whether advertising is worth it.

Comparing ROAS across channels

Adding Google's ROAS to Meta's ROAS rarely gives you the real total. Each platform attributes sales by its own rules, so a customer who saw an Instagram ad and later clicked a Google ad can be counted by both. Three habits help:

  1. Use one revenue definition (with or without tax and shipping) across all platforms.
  2. Check the total against your store's actual sales for the same period. If platforms report more sales than you made, attribution overlaps.
  3. Compare like with like. Search often catches people who are already looking to buy; social often reaches them earlier. For when to use each, see google ads vs facebook ads.

Common mistakes

  1. Treating a high ROAS as profit. A 300% ROAS on a 20% margin product loses money.
  2. Judging yesterday. Late conversions and click-date reporting make the last few days look worse than they are.
  3. Counting secondary actions. Add-to-cart values mixed into revenue inflate ROAS.
  4. Ignoring returns and cancellations. Platforms see the order, not the refund.
  5. Setting a target far above your history. Both Google and Meta warn that an overly ambitious target can limit delivery or spend.

How Examenda helps

Examenda brings Google Ads, Meta and TikTok into one panel. Numbers that each platform names differently, such as Conv. value / cost on Google and ROAS on Meta, are shown in one table with one set of definitions: spend, sales and cost per sale. You get budget suggestions and a weekly report every Monday, and AI suggestions on where to shift budget arrive as approval cards; nothing changes until you approve it. On the Growth plan you can connect your sales data to see profit after product cost and fees, not just revenue, and set rules like "alert me if cost per sale misses my target for 3 days".

The Starter plan is $49 a month, and billed yearly you get two months free.

See Examenda →

FAQ

What is a good ROAS?
One above your break-even ROAS. Calculate it as 1 divided by your margin before ad costs. With a 50% margin you break even at 2 (200%); anything above that is profit on the first order.

Is ROAS a ratio or a percentage?
Both are common. Google Ads uses a percentage for Target ROAS (500%), Meta uses a decimal for its ROAS goal (1.100 for 110%). Multiply the ratio by 100 to get the percentage.

Why does my ROAS differ between Google Ads, Meta and my store?
Each platform attributes sales with its own rules and time windows, Google reports by click date, and the same sale can be credited by more than one platform. Your store's sales are the reference; use platform ROAS to compare campaigns within that platform.

Sources: Google Ads Help, "About Target ROAS bidding", "Conversion value per cost: Definition" and "Understand your conversion tracking data"; Meta Business Help Center, "About bid strategies", "About ROAS goal" and "About actions attributed to your ad". Information as of 24 October 2026.