Target ROAS Calculator
See the ROAS a campaign has to hit for you to reach the net profit you actually want.
Calculator
Enter your values and the result updates instantly.
Result
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What is target ROAS?
Target ROAS is the ratio you need once you want to clear the break-even point and keep a specific net profit. Break-even describes zero profit; target ROAS describes the profit you are aiming for.
It lets you set a campaign goal from arithmetic rather than instinct. Once the goal is "reach this ratio" instead of "do better", budget decisions become measurable too.
How it is calculated
Target ROAS = 1 ÷ (Profit Margin − Target Net Profit)
Enter your profit margin and the share of the sale you want to keep as net profit, both as percentages. The tool takes the difference between them and inverts it.
Both figures must be expressed against the same base, the sale price. If the target net profit exceeds your margin, no achievable ratio exists; the tool tells you so instead of returning a number.
How to read the result
The ratio you get is your campaign’s performance goal. If your current ROAS sits below it, the gap between the two is the distance you need to close.
The higher the profit target, the faster the required ratio climbs; a target that sits close to your margin demands a ROAS that is very hard to hold in practice. Keeping the target at a level you can scale into is usually more sustainable.
Frequently asked questions
Why can target net profit not exceed the profit margin?
Net profit comes out of the margin. Asking for the entire margin as net profit leaves nothing for ad spend, so no calculable ROAS exists.
What does the gap between target and break-even ROAS mean?
That gap is the share you have set aside as profit. The wider it is, the better the campaign has to perform.
Should I set a separate target for every campaign?
Yes, if margins vary by product group. Applying one target ROAS across campaigns promoting different margins makes some of them look like failures without cause.