Free tool · Google Ads · Australia

Minimum ROAS & Break-Even Calculator for Google Ads

Enter your margin and budget: instantly calculate the minimum ROAS you need to break even and when you actually start making money. Works for ecommerce and lead generation.

Enter your numbers

%

Margin after COGS. Exclude your ad spend from this figure.

$
$
%

Average ecommerce: 1-3%. Leave at 0 if unknown.

Minimum ROAS to break even

3.33×

For every dollar spent on Google Ads, you need at least $3.33 in revenue to cover costs.

Min. monthly revenue

$5,000

Min. monthly orders

42

Min. monthly clicks

2,083

Max. CPC

$0.72

Profitability table

ROAS
Revenue
Gross profit
Net result

How to interpret your minimum ROAS

The minimum ROAS is your floor, not your target. Operating exactly at the minimum ROAS means Google Ads covers its own costs but generates no profit. To make the channel genuinely profitable, you need an operating margin above that floor.

A practical rule: set your ROAS target 50-80% above the minimum. If your minimum is 3×, aim for 4.5-5.5× as your campaign target. That buffer absorbs seasonal swings, algorithm learning phases, and CPC increases.

In ecommerce, ROAS varies significantly by campaign type within Google. Brand campaigns often return 10-20× ROAS while generic campaigns return 3-5×. Always analyse ROAS at the campaign level, not just the account average.

For lead generation, the maximum CPL the calculator gives you is the theoretical threshold. In practice, reserve a 20-30% buffer above that CPL for operational costs, management time, and lead quality variation. Not every lead has the same probability of closing.

If your current ROAS is below the minimum shown above, the problem is almost always in one of three places: conversion tracking, negative keyword gaps, or bid strategy configuration. The 45-point Google Ads audit checklist walks through each area in the order that surfaces the highest-value issues first.

ROAS benchmarks by industry — Australia 2026

Minimum ROAS depends on your margin. Target ROAS is what you should configure in your automated bidding strategies.

Industry
Typical margin
Min ROAS
Target ROAS
Ecommerce fashion / apparel
35-50%
2.0-2.9×
3.5-5×
Ecommerce electronics
10-20%
5-10×
8-15×
Ecommerce home / lifestyle
40-55%
1.8-2.5×
3-4×
Trade services (leads)
55-75%
1.3-1.8×
2-3×
Allied health / clinics
50-70%
1.4-2×
3-5×
Legal / professional services
65-85%
1.2-1.5×
2-3×
Mortgage broking
70-85%
1.2-1.4×
2-4×
Removalists / logistics
25-40%
2.5-4×
4-7×

Benchmarks based on accounts managed by Adstralis and publicly available Google data. Target ROAS includes an operating margin buffer.

Frequently asked questions about ROAS and break-even

What is minimum ROAS in Google Ads?
Minimum ROAS is the level at which your campaigns stop losing money. It is 1 divided by your net profit margin. If your margin is 30%, your minimum ROAS is 3.33×: for every dollar spent on ads, you need $3.33 in revenue just to cover costs. Operating below this level means every dollar you spend destroys value.
How do you calculate Google Ads break-even?
For ecommerce: Revenue needed = Ad spend / Margin. If you spend $1,500 with a 40% margin, you need $3,750 in sales to break even. For lead generation: Maximum CPL = Client value × Close rate. If a client is worth $3,000 AUD and you close 20% of leads, you can spend up to $600 per lead and remain profitable.
What ROAS should I target on Google Ads in Australia?
For Australian ecommerce with 30-50% margins, target 4-6× ROAS. Trade and service businesses with high margins (55-75%) can be very profitable at 2-3× ROAS. High-ticket industries like mortgage broking or legal services can sustain a business at 1.5-2.5× if client lifetime value is strong. The key is always operating above your minimum ROAS with a meaningful buffer.
What is the difference between ROAS and ROI?
ROAS = Revenue / Ad spend. It only measures the efficiency of your advertising budget. ROI = (Net profit / Total investment) × 100. It accounts for all costs of running the business. You can have a strong ROAS and still have a negative ROI if your margins are thin. Always calculate minimum ROAS using your real margin, not gross revenue.
Does this calculator work for lead generation and service businesses?
Yes. Switch to Lead Generation / Services mode and enter your average client value and close rate. The calculator shows you the maximum CPL you can afford. This is essential for tradies, allied health, law firms, mortgage brokers, and any business that generates leads rather than direct ecommerce sales.

Are your campaigns above break-even?

If you are not sure, they probably are not. We review your Google Ads account and tell you exactly where budget is being wasted and how to improve ROAS.

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