The ROAS formula
ROAS (return on ad spend) = revenue from ads ÷ ad spend. Spend 2,500 and generate 10,000 in sales and your ROAS is 4x — every 1.00 of ad spend brought back 4.00 in revenue. Google Ads shows the same number as a percentage: 400%.
Try it here:
That number tells you what happened. The question that decides whether you make money is the reverse one — what ROAS do you need? — and to answer it you have to know exactly what each sale can afford to spend on ads.
The calculation that matters runs backwards
Target ROAS = the revenue Google tracks ÷ the ad spend one sale can afford. The second half of that division is built from your costs — which is exactly what the precision calculator above works out.
What the calculator works out
The Precision COGS+ tab runs the full calculation, the same way GROW prices live bids:
- Revenue basis. Your selling price, ex-VAT where VAT applies — VAT is a pass-through, so profit maths never include it. It also accounts for whether your conversion tag reports VAT-inclusive revenue, so the target matches what Google actually measures.
- COGS+ — your true cost per sale. Product cost plus shipping, payment fees, fulfilment, duties and expected returns. This is the number most sellers underestimate, and the reason a "profitable" ROAS often isn't.
- Allowable ad spend. What's left of each sale after COGS+ and the profit you want to keep — the most a sale can cost to win before it stops being worth winning.
From those three inputs it returns:
- Break-even ROAS — below this line, every sale loses money.
- Target ROAS — the number that protects your profit goal, with the exact percentage to enter in Google Ads (4.05x = 405%).
- Profit per sale and real margin — what you actually keep after every cost.
- Max cost per sale (CAC) — your ceiling for acquiring one customer.
Same engine as our live bidding
This page runs the exact bidding engine GROW uses to set live per-product bids on Google Shopping — results here match the platform's MarginStack™ calculations to the penny. For the full theory behind the numbers, read the complete guide to ROAS.















