Target ROAS vs Break-even ROAS

Find the maximum acquisition cost after variable order costs and retained profit. Divide the conversion-value basis by that amount to get target ROAS in x format. Multiply by 100 for Google Ads percentage format.

Google tROAS % = (conversion value / allowable ad spend) x 100

For example, 2.86x is entered as 286%. A 286% bid target does not mean Google will produce exactly 2.86x actual ROAS or preserve order volume.

Assume a $100 net order, 58% gross margin, 3% fees, and a 5% returns and discounts allowance. Contribution before ads is $50.

• Check whether the imported purchase value includes tax, shipping, discounts, or refunds.
• Keep the calculator's net-revenue basis aligned with the value Google Ads is optimizing.
• Separate new-customer value adjustments from ordinary order revenue when used.
• Allow conversion delay and value adjustments to mature before evaluating a recent period.
• Do not assume a higher tROAS always increases profit; it can reduce eligible traffic and total volume.

Operational check: Compare actual contribution at the resulting volume. The bid target is one control input, not a contract for realized revenue, causality, or profit.

Google documents target ROAS bidding and conversion adjustments. The conversion from retained profit to allowable ad spend is ROAS Break's transparent business model, not a Google recommendation.

• Google Ads: About target ROAS biddingTarget ROAS bidding definition and operation. Checked August 20, 2026.
• Google Ads: Conversion adjustmentsAdjustment and reporting considerations. Checked August 20, 2026.