What is the Target ROAS Calculator?
Target ROAS is the return on ad spend you need to hit a chosen profit margin after advertising. Formula: target ROAS = 1 ÷ (contribution margin − target profit margin). If products leave a 55% contribution margin and you want 15% profit after ads, ads can use 40% of revenue, so target ROAS = 1 ÷ 0.40 = 2.5× (250% in Google Ads).
With an $80 order and $34 of variable costs, contribution margin is 57.5%; keeping 15% profit gives a target ROAS of 2.35× and a maximum CPA of $34. Break-even ROAS is shown alongside for comparison.
How to use the Target ROAS Calculator
- Enter Average order value.
- Enter Variable costs per order (product, shipping, fees).
- Set Target profit margin after ads as a percentage of revenue.
- Read target ROAS, max CPA, break-even ROAS and ad budget per order, and use the target as your tROAS or ROAS goal.
Why use AnyShift's Target ROAS Calculator
Instant resultsNumbers update as you type — no submit button, no page reloads.
Formula shownEvery result shows how it was calculated so you can check the maths.
Editable assumptionsRates, fees and defaults are pre-filled but always adjustable.
Private by designCalculations run in your browser. Nothing is stored or sent.
Popular use cases
- Setting a tROAS bid strategy in Google Shopping or Performance Max
- Choosing a ROAS goal for Meta Advantage+ campaigns
- Briefing an agency with a profit-based ROAS target
- Comparing targets across product lines with different margins
Target ROAS by contribution margin and profit goal
| Contribution margin | Break-even (0% profit) | 10% profit | 20% profit |
|---|---|---|---|
| 40% | 2.50× | 3.33× | 5.00× |
| 50% | 2.00× | 2.50× | 3.33× |
| 60% | 1.67× | 2.00× | 2.50× |
| 70% | 1.43× | 1.67× | 2.00× |
Frequently asked questions
How do I set tROAS in Google Ads?
Enter it as a percentage: a 2.5× target is 250% tROAS and 2.35× is 235%. Start close to your current actual ROAS and move towards the target gradually.
Should target ROAS be the same for all products?
No. Products with different margins need different targets; segment campaigns or product groups by margin band and set a target for each.
What is the difference between target ROAS and break-even ROAS?
Break-even ROAS (1 ÷ contribution margin) leaves zero profit after ads; target ROAS adds your desired margin. With a 57.5% contribution margin, break-even is 1.74× and a 15% profit target needs 2.35×.
Why does it say the target is not reachable?
If the target profit margin is equal to or above your contribution margin, there is nothing left to spend on ads. Lower the target or raise contribution margin with higher prices or lower costs.
Can a lower target ROAS make more total profit?
Sometimes. A lower target lets the platform bid more and win more sales at a thinner margin; if volume grows enough, total profit can rise. Change targets in small steps and judge results on profit, not ROAS alone.
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