How to calculate your true ROAS

    The ROAS in Google Ads is a revenue ratio. It says nothing about whether you kept anything.

    What Google's ROAS includes

    Conversion value from tracked conversions, attributed to your campaign, before any of your costs.

    What it leaves out

    Product cost, shipping, transaction fees, returns, VAT treatment, and any conversion Google attributed generously.

    The adjustment, in order

    1. Strip VAT if your conversion value includes it.
    2. Subtract product and shipping cost.
    3. Subtract transaction fees.
    4. Adjust for your return rate.
    5. Compare against the ROAS that product needs to break even.

    A 3.5 ROAS on a 20% margin product is a loss. A 1.9 ROAS on a 60% margin product is a good day. The number on its own means nothing without the margin beside it.

    Let it run per order instead

    Pythago does this on every order, then rolls it up per product and per campaign — so the figure on your screen is the figure in your bank account.

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    See which products are losing you money today

    Connect Shopify and Google Ads in under five minutes. From $59/month, cancel anytime, and no campaign changes without your approval.

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    support@pythago.ioWhatsApp +31 85 060 7367