How to set a ROAS target that reflects your margin

Most stores apply one tROAS across the whole catalogue. That's why the thin-margin products keep getting budget.

Calculate break-even ROAS per product. Use the free calculator or the formula on that page.
Decide the margin you want to keep, as a share of revenue. Be realistic — 10–15% net is a healthy outcome for most stores at scale.
Set your target above break-even by that margin. Target ROAS = 1 ÷ (margin − target net margin).
Group products by margin tier before setting campaign targets. A single campaign containing 15% and 55% margin products cannot have one correct target. Splitting them is usually worth more than any bid adjustment.
Revisit when costs move. Supplier price changes and shipping increases change your break-even point immediately, and most stores do not update their targets for months.

Or let it recalculate itself

Pythago recalculates break-even ROAS per product automatically as your costs change, and shows which campaigns are running below it today.

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