Google Ads ROAS Target
ROAS target: revenue / ad spend. B2B SaaS 3-5x typical. E-commerce 4-8x. Calculate based on margin, CAC payback target, LTV.
| Gross margin | — |
| Customer LTV | — |
| Payback target | — |
| Industry | — |
| Your target ROAS | — |
| Minimum ROAS | — |
| Industry benchmark | — |
Google Ads ROAS (Return on Ad Spend) target depends on your gross margin, customer LTV, and CAC payback period. B2B SaaS typically targets 3-5x ROAS. E-commerce 4-8x. Use this as input to Google's Target ROAS bidding strategy.
Calculating Your Target
Target ROAS = LTV / Target CAC. Where Target CAC = LTV × Gross Margin / (Payback Target / 12). Example: $5K LTV, 70% margin, 12-month payback = $292/month margin = need $3,500 CAC max = 1.4x ROAS minimum. For 3:1 LTV:CAC ratio: $5K / $1,667 = 3x ROAS.
Industry Benchmarks 2027
B2B SaaS: 3-5x typical, 2-3x acceptable. E-commerce: 4-8x typical. Subscription box: 6-10x. Lead gen: 2-3x (per qualified lead). Mortgage/Insurance: 3-5x. Education: 4-6x. Use as starting reference, not absolute.
Google Target ROAS Strategy
Set up Target ROAS bidding in Google Ads. Algorithm bids to hit your target. Requires 30-day data on conversions to function. If consistently above target: lower it (be more aggressive). Below: raise it (more efficient). Optimize quarterly.
Last updated May 2026. Sources: Google Ads ROAS Guide.