PPC ROI Calculator

A good ROAS (Return on Ad Spend) varies by industry and business model. Generally, a ROAS of 4:1 ($4 revenue for every $1 spent) is considered good. Ecommerce businesses often target 3:1 to 5:1, while high-margin businesses (SaaS, professional services) can be profitable at 2:1 or even lower if the customer lifetime value is high. A ROAS below 1:1 means you are spending more on ads than generating in revenue, which is unsustainable unless you are investing in brand awareness.

ROAS and ROI measure different things. ROAS = Revenue / Ad Spend (e.g., $10K revenue from $2K spend = 5x ROAS). ROI = (Revenue - Total Cost) / Total Cost x 100 (e.g., ($10K - $2K) / $2K x 100 = 400% ROI). ROAS only looks at revenue relative to ad spend, while ROI accounts for all costs and measures actual profit. Both are useful: ROAS for quick campaign optimization, ROI for overall profitability assessment.

A good CPA depends entirely on your average order value and customer lifetime value. As a rule of thumb, your CPA should be no more than 30% of the customer lifetime value. For ecommerce, the average CPA across industries is $45 to $65 on Google Ads and $18 to $55 on Facebook Ads. For SaaS, CPAs of $100 to $500 are common but acceptable when LTVs are $5K+. The key metric is your LTV:CPA ratio, which should be at least 3:1.