How to Calculate ROAS for Google Ads
ROAS (Return on Ad Spend) measures revenue generated per dollar spent on Google Ads. The formula is: ROAS = Revenue from Ads / Ad Spend. For example, if you spend $1,000 on Google Ads and earn $5,000 in revenue, your ROAS is 5.0x (or 500%). Google Ads also uses a percentage form: ROAS % = (Revenue / Ad Spend) × 100%. A ROAS of 4x means every $1 spent returns $4 in revenue. This metric is critical for Google Ads Smart Bidding strategies like Target ROAS, where Google automatically adjusts bids to hit your desired return.