ROAS Calculator 2026

4–8× is typical for Google Search campaigns in the UK. E-commerce businesses often target a minimum of 4× ROAS (assuming ~25% gross margin). Service businesses with higher margins (60–80%) may accept 2–3× ROAS. Always calculate break-even ROAS first: break-even ROAS = 1 ÷ gross margin %. For a 40% margin business, break-even ROAS is 2.5× — any ROAS above this is profitable.

ROAS (Return on Ad Spend) measures revenue return — how much revenue each £1 of ad spend generates. POAS (Profit on Ad Spend) measures profit return — how much gross profit each £1 generates. POAS is more meaningful for businesses with variable margins or product mixes, because a high ROAS on low-margin products can still be unprofitable. Formula: POAS = (Revenue × Gross Margin %) ÷ Ad Spend. Targeting POAS ≥ 1 ensures campaigns are at minimum breaking even at gross margin level.

Break-even ROAS is the minimum ROAS needed to cover your ad spend from gross margin. Formula: Break-even ROAS = 1 ÷ Gross Margin %. Examples: 25% gross margin → 4× break-even ROAS; 40% margin → 2.5×; 60% margin → 1.67×; 80% margin → 1.25×. Any ROAS above break-even means the campaign is profitable at gross margin level. Note: this does not account for fixed overhead costs — a fully profitable campaign typically needs ROAS well above break-even to cover operating costs too.