Free PPC ROI Calculator

ROAS divides revenue by ad spend and ignores everything else, so 4x means four dollars back for every one spent. ROI subtracts the cost first and expresses the profit as a percentage. ROAS looks better on a slide, ROI tells you whether you made money.

Divide 100 by your gross margin percentage. At a 25% margin you need 4x ROAS just to break even, at 50% you need 2x. Campaigns are often called successful at a ROAS that is quietly losing money once cost of goods is included.

For a genuine ROI figure, yes. Platform spend alone gives you the media return, not the business return. Include management fees, creative production and any tooling, because those costs are just as real as the ad budget.

Ad platforms use view-through and click-through attribution windows that claim credit generously, and each platform counts independently. If Google, Meta and TikTok each report their share, the total will exceed what your accounts actually received.

Anything comfortably above zero after all costs, sustained. A frequently cited benchmark for Google Ads is around 200%, meaning two dollars of profit per dollar spent, but this varies so much by margin and industry that your own break-even is the number that matters.

Cut the losing keywords and placements before touching anything else, since most accounts have a small share of spend producing most of the waste. Then work on landing page conversion, which improves the return on every remaining click at once.

Long enough to accumulate meaningful conversions, typically at least 30 to 50 per variant, and long enough to cover a full purchase cycle. Switching off a campaign after three days is how most accounts never escape the learning phase.

Not directly, and appearing in ads has no effect on organic rankings. It is genuinely useful as research though: paid search tells you within days which keywords convert, which is information that would take months to learn organically.

For a fair comparison, yes, but keep it separate. First-purchase ROI tells you whether the campaign is self-funding. Lifetime ROI tells you whether it is worth losing money on the first order, which many subscription businesses deliberately do.

Because the cheapest, highest-intent audience is reached first. Doubling the budget means bidding on broader terms and colder audiences, and returns fall accordingly. Scaling almost always costs efficiency, so plan for it rather than being surprised.