⚡ Quick answer
Calculate your Google Ads ROI by subtracting your ad spend from your revenue, then dividing by your ad spend and multiplying by 100.
Google Ads ROI Calculator
ROI for Google Ads campaigns.
📖 What it is
The Google Ads ROI Calculator helps you determine the effectiveness of your advertising efforts by analyzing the return on investment from your campaigns. Understanding your ROI is crucial for making informed decisions on where to allocate your marketing budget.
By inputting your total ad spend, the number of conversions, and your average order value, the tool will provide you with key metrics, including total revenue and the percentage ROI. This enables you to see how well your ad dollars are converting into actual revenue.
It’s important to note that while this calculator offers valuable insights, it assumes that all conversions are attributed directly to your Google Ads campaigns. Factors like cost of goods sold (COGS) and fulfillment costs should also be considered for a complete profitability assessment.
How to use
- Enter your total ad spend.
- Input the number of conversions acquired.
- Provide the average order value.
- Calculate your total revenue using the formula: Conversions × Average Order Value.
- Determine ROI using the formula: ((Revenue - Ad Spend) / Ad Spend) × 100.
📐 Formulas
- Revenue—Conversions × Average Order Value
- ROI—((Revenue - Ad Spend) / Ad Spend) × 100
💡 Example
If you spend $500 on Google Ads and acquire 20 conversions with an average order value of $50:
1. Calculate revenue: 20 × $50 = $1,000.
2. Determine ROI: (($1,000 - $500) / $500) × 100 = 100%.
Real-life examples
Example 1
Spent $500 on Google Ads, got 20 conversions with an average order value of $50. Revenue: $1,000; ROI: 100%.
Example 2
Invested $1,200 in ads, achieved 30 conversions with each worth $40. Revenue: $1,200; ROI: 0%.
Scenario comparison
- High ROI—Spent $600, earned $1,800 in revenue; ROI is 200%.
- Break-even—Spent $1,000, earned $1,000 in revenue; ROI is 0%.
- Negative ROI—Spent $800, earned $500 in revenue; ROI is -37.5%.
Common use cases
- Assessing the effectiveness of a new Google Ads campaign.
- Comparing different ad strategies' performance.
- Budgeting for future marketing efforts.
- Analyzing seasonal campaign effectiveness.
- Determining if ad spend should be increased or decreased.
How it works
The calculations rely on basic revenue and ROI formulas. Revenue is derived from the total number of conversions multiplied by the average order value, while ROI is a percentage that indicates how much profit is made relative to the ad spend. This tool streamlines the process of evaluating the effectiveness of your ad campaigns.
What it checks
This tool checks the revenue and ROI performance of a Google Ads campaign based on spend, conversions, and order value.
Signals & criteria
- Ad spend
- Conversions
- Average order value
- Derived revenue
- ROI percentage
Typical errors to avoid
- Using attributed conversions from a different window than spend.
- Confusing ROI with ROAS.
- Ignoring COGS and fulfillment costs when evaluating profitability.
Decision guidance
Trust workflow
Recommended steps after getting a result:
- Double-check input values for accuracy.
- Ensure conversions are correctly attributed to the right ad spend.
- Consider all costs associated with sales for a true profitability picture.
FAQ
FAQ
ROI vs ROAS for Google Ads?
ROAS is revenue/spend. ROI includes net gain relative to spend and can be lower when costs are included.
Can ROI be negative?
Yes. Negative ROI means campaign revenue is below ad spend.