Work out the target ROAS (tROAS) to set in Google Ads so you hit the net profit margin you actually want to keep — not just break even.
Get a free PPC auditFor every £1 of revenue you keep your gross margin and pay 1÷ROAS in ads. To keep a target net margin: tROAS = 1 ÷ (gross margin − target net margin). Want 20% net on a 40% margin? Set tROAS to 5.0.
A break-even tROAS makes no profit. Decide the net margin you want to keep first, then set the tROAS that delivers it.
Divide 1 by (gross margin − target net margin), expressed as decimals.
One that leaves the net profit you want after ad cost — this tool gives you that figure.
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If the figures aren't where you want them, I'll find exactly where your Google Ads budget is leaking — free, no obligation.
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