Google Ads ROI Calculator
Calculate your true Google Ads ROI accounting for profit margins, customer lifetime value, and operating costs.
Know exactly if your campaigns are profitable—and by how much.
Your Campaign Data
e.g., 40 for 40% margin
Total revenue per customer over their lifetime
Your Results
Enter your data and click Calculate to see your ROI
Understanding Your Results
Cost Per Click (CPC)
How much you pay on average for each click on your ads. Lower CPC means more efficient campaigns.
Formula: Total Ad Spend ÷ Total Clicks
Conversion Rate
The percentage of clicks that turn into customers. Higher is better.
Formula: (Conversions ÷ Clicks) × 100
Cost Per Acquisition (CPA)
How much you spend to acquire one customer. Must be lower than your customer lifetime value to be profitable.
Formula: Total Ad Spend ÷ Total Conversions
ROAS (Return on Ad Spend)
For every $1 spent on ads, how much revenue you generate. A ROAS of 4x means $4 in revenue for every $1 spent.
Formula: Total Revenue ÷ Total Ad Spend
ROI (Return on Investment)
Your actual profit as a percentage of ad spend. This is the most important metric—it accounts for costs and margins.
Formula: (Profit ÷ Ad Spend) × 100
Lifetime Value (LTV) ROI
The long-term profitability including repeat purchases. Much more accurate for subscription or repeat purchase businesses.
Formula: (LTV Profit ÷ Ad Spend) × 100
Industry Benchmarks
| Metric | E-commerce | SaaS | Lead Gen |
|---|---|---|---|
| Avg CPC | $1.50 - $3.00 | $3.00 - $7.00 | $2.00 - $5.00 |
| Conversion Rate | 2% - 5% | 3% - 7% | 5% - 10% |
| Target ROAS | 4x - 6x | 3x - 5x | 5x - 10x |
| Target ROI | 150% - 300% | 200% - 400% | 300% - 500% |
Note: These are industry averages. Your results will vary based on product price point, market competition, and campaign optimization. Use these as guidelines, not absolutes.
How to Improve Your ROI
Increase Conversion Rate
Optimize your landing pages, simplify checkout, add trust signals, and test different offers.
Lower Cost Per Click
Improve Quality Score, use exact match keywords, add negative keywords, and target less competitive terms.
Increase Average Order Value
Add upsells, cross-sells, bundles, and free shipping thresholds to boost transaction size.
Maximize Customer Lifetime Value
Focus on retention, repeat purchases, subscriptions, and referrals to increase long-term value.
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