ROAS stands for return on ad spend: the revenue (or other conversion value) your ads bring in, divided by what you spent on them. Google Ads shows it as a percentage, so in Google's own example, $5 of sales for every $1 of ad spend is a ROAS of 500% (figures as of October 2026).
The formula is simple: ROAS = conversion value divided by ad cost, multiplied by 100 if you want a percentage. In Google Ads, Target ROAS is also the name of a bidding strategy, where you tell Google the average conversion value you want back for each pound or dollar you spend, and Google's AI sets your bids to chase it.
How to find your ROAS in Google Ads
- Make sure every conversion action you track has a value set on it.
- Go to Modify columns, then Conversions, and add the Conv. value / cost column.
- Multiply that figure by 100 to get your ROAS as a percentage.
- Leave out the most recent few days, because conversions can take time to be counted.
Google describes Conv. value / cost as an estimate of your return on investment: total conversion value divided by total cost. If your values are missing or all showing $1.00 (as of October 2026, per Google's help page), check that Use different values for each conversion is switched on. If you run Shopify or WooCommerce through Google Tag Manager, check the variable mapping in your data layer too.
How Target ROAS bidding works
Target ROAS is a Smart Bidding strategy. At auction time, Google predicts the value of each possible conversion and bids high on searches likely to bring in high value sales and low on the rest. You can use it on one campaign or as a portfolio strategy across several, though the portfolio option isn't available for Performance Max, Hotel or Travel campaigns. Your existing bid adjustments are ignored, apart from a device adjustment of minus 100%, and Google doesn't recommend setting bid limits because they restrict the AI.
One naming change to know about: from June 2026, Google Ads relabelled Maximize conversion value with a Target ROAS as simply Target ROAS. It works the same way, so if a guide uses the old name, it's the same thing.
The conversions Google needs before you can use Target ROAS
This is the part small businesses don't expect. You can't switch Target ROAS on with a handful of sales. Google sets minimums by campaign type, and conversions only count if they have a value above zero.
| Campaign type | Minimum Google asks for |
|---|---|
| Search and Shopping | 15 conversions in the past 30 days |
| Display | 15 conversions with valid values in 30 days, across campaigns |
| App | 10 a day, or 300 in 30 days |
| Demand Gen | 50 in the past 35 days (10 in the last 7), or 100 across Demand Gen campaigns |
| Video Action | 30 in 30 days |
| Hotel and Travel | 50 a week, or 50 in 7 days |
Google's advice is to run Target CPA first and report conversion values for 4 weeks, or 1 to 2 conversion cycles, whichever is longer, before you move to value based bidding. It also says fewer, larger campaigns that collect more conversions generally do better than lots of small ones.
For shopping campaigns, Google Merchant Center is the next stop.
Why setting your ROAS target too high backfires
Google says a target that's set too high limits your traffic. If you want more volume, lower the target gradually. If you want more value per sale, raise it. But don't fiddle every few days: frequent changes to your budget, your target or your conversion goals reset the standard 7 to 14 day learning period, and you're back to square one.
Budget matters too. Google suggests being comfortable with spending up to twice your average daily budget on any one day, though over a month you won't be charged more than your average daily budget times 30.4 days. If your budget is already tight, read my guide to where small business Google Ads budgets leak before you change your bidding.
Reading the numbers next to your ROAS
Your ROAS column rarely sits on its own. These are three conversion columns Google defines, and each one answers a different question.
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| Column | How Google calculates it | What it tells you |
|---|---|---|
| Conv. value / cost | Total conversion value divided by total cost | Your ROAS, before you multiply by 100 |
| Cost / conv. | Total cost divided by conversions | What each conversion cost you |
| Conv. rate | Conversions divided by eligible interactions | How often an interaction turns into a conversion |
So if Conv. value / cost shows 5 for the last 30 days, your ROAS is 500%. That's the figure I'd start your target near: your own history, not a dream number. Then give it time to learn before you touch it.
Two more dates worth knowing. In the same June 2026 change, Google renamed Maximize conversions with a Target CPA to plain Target CPA. And from 17 August 2026, Google updated its bidding systems for budget limited campaigns using Target CPA or Target ROAS, which it says may cause temporary fluctuations. If your numbers jumped around in late August, check whether that update explains it before you start changing targets.
Once you know the number, choosing between Facebook and Google ads helps you pick a channel.
My verdict
ROAS is a useful number, but remember what it measures: revenue against ad spend, not profit. Once you take off the cost of the product, delivery, fees and your own time, a 500% ROAS can still leave you out of pocket, so work out the ROAS you need to break even before you pick a target. And if you're a small shop with only a few sales a month, don't start with Target ROAS. You probably won't hit Google's minimums, and the AI has too little to learn from. Get your conversion tracking and values right first. If you're new to the platform, start with my beginner's guide to running a Google Ads campaign.
Frequently asked questions
What is a good ROAS?
It depends on your margins, because ROAS measures revenue, not profit. Work out the ROAS you need to cover your costs before setting a target.
How do you calculate ROAS?
Divide conversion value by ad cost and multiply by 100. Google's example: $5 of sales for $1 of ad spend is a 500% ROAS (as of October 2026).
How many conversions do I need for Target ROAS?
For Search and Shopping campaigns, Google asks for at least 15 conversions in the past 30 days. Other campaign types have different minimums.
How long does Target ROAS take to learn?
Google describes a standard learning period of 7 to 14 days, and frequent changes to budgets, targets or conversion goals reset it.
Is ROAS the same as ROI?
Not quite. ROAS compares revenue with ad spend only, while ROI takes all your costs into account.
