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Target ROAS Calculator

Calculate Target ROAS (tROAS) from your margin — not a generic 3× or 4× guess. Enter AOV and gross margin to get your break-even floor, then set Target ROAS above it for profit. Free, no signup.

Quick answer

Target ROAS (tROAS) is the bid goal in your ad platform — usually 10–25% above break-even ROAS so campaigns stay profitable under variance.

Target ROAS = break-even ROAS × (1 + profit buffer) — often 10–25% above break-even

Business model
Revenue per sale, before ad costs
Profit as a percentage of value
Optional: shipping, payment fees, etc.

Break-even ROAS

Target ROAS from margin

Platform Target ROAS bidding optimizes to a revenue multiple. Your profitable target must start from contribution margin:

  1. Break-even ROAS — use the calculator above (same math as the Break Even ROAS Calculator).
  2. Target ROAS — set tROAS above break-even so average performance leaves room for fees, returns, and bid variance.
  3. Buffer rule of thumb — multiply break-even by 1.10 to 1.25 (10–25% above floor). Higher buffers mean fewer impressions but safer profit.

Target ROAS = break-even ROAS × (1 + profit buffer) — often 10–25% above break-even

Example: 50% margin, no fixed costs → break-even = 2.0×. With a 20% buffer, Target ROAS ≈ 2.4×. At 25% margin, break-even is 4.0× — a 3× target would still lose money.

Where to use Target ROAS

  • Google Ads — Maximize conversion value with a target ROAS on Search, Shopping, or Performance Max. See Google Ads break-even ROAS for campaign settings.
  • Meta Ads — Value optimization / ROAS goals against the same margin floor.
  • CPA bidding instead? Convert the same contribution into dollars with the Max CPA Calculator, or compare units in ROAS vs ROI vs CPA.

People also ask about target ROAS

  • What is a target ROAS calculator?

    A target ROAS calculator turns your margin and AOV into the minimum ROAS you need to break even, then helps you set Target ROAS (tROAS) above that floor for profit.

  • How do I calculate target ROAS from margin?

    First find break-even ROAS = AOV ÷ contribution per order. Contribution = (AOV × margin %) − fixed costs. Set Target ROAS 10–25% above break-even so campaigns stay profitable under variance.

  • Is target ROAS the same as break-even ROAS?

    No. Break-even ROAS is the minimum return on ad spend where contribution margin equals ad spend — the floor below which campaigns lose money after product costs. Target ROAS is the bid goal you enter in the ad platform — usually above break-even so you keep margin.

  • What target ROAS should I use in Google Ads?

    Start from your margin-based break-even, then add a buffer (often 10–25%). Example: 2.0× break-even → try 2.2×–2.5× tROAS. Revisit after learning periods and margin changes.