Target ROAS calculator

Calculate your target ROAS

Using the two business inputs below, our calculator will generate the target ROAS you need to achieve your advertising goals.

Avg. profit margin as percentage of revenue

0
%
5
25
50
75
100

To determine your margin, only include costs that increase when selling additional products or services, such as cost of goods sold, fulfilment, commissions, etc.

This means you should leave out most salaries, office rent, and other overhead expenses.

Percentage of that margin you're willing to invest in acquisition

0
%
5
25
50
75
100

For most advertisers, 50% to 70% is the profit-maximizing range.

A higher percentage will allow you to bid more agressively and capture more market share, but it will be at the expense of profitablity.

A lower percentage will allow you to keep more of your margin, but it will be harder to compete with advertisers who are willing to invest more of their margin into acquisition.

If you set this to 100%, your advertising is breaking even.

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Summary

Avg. profit margin as percentage of revenue
0
%
Percentage of that margin you're willing to invest in acquisition
0
%
Your target ROAS should be
100
%
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