A high ROAS does not necessarily mean your campaigns are profitable.
ROAS measures how much revenue is generated for every dollar spent on Google Ads. It does not account for product costs, service delivery, management fees or other campaign expenses.
True ROI goes further by comparing gross profit against your total campaign investment, giving a more accurate indication of profitability.
If your ROI is positive, the projected gross profit exceeds your advertising and campaign costs based on your inputs.
If your ROI is negative, the campaign is not yet expected to recover its full investment. This may indicate high CPCs, low conversion rates, thin margins or insufficient customer value.
The break-even ROAS shows the minimum return required before your campaigns become commercially profitable.
Customer lifetime value is displayed separately to illustrate the long-term value of acquired customers without artificially inflating the ROI calculation.
If you want to validate these projections and build a profitable Google Ads strategy, our Google Ads specialists can develop a tailored forecast using your actual campaign data.