What is Google Ads ROI?
Google Ads ROI is the profit your paid search generates for every dollar spent, expressed as a percentage. It builds on ROAS but subtracts the spend, so it answers the sharper question a CFO asks: not just how much revenue came back, but how much more than you put in. For B2B SaaS, the honest version reads ROI against lifetime value, because a single closed deal can dwarf the click cost that started it.
How this calculator works
The formula: Revenue = conversions × revenue per conversion Google Ads ROI = (revenue − ad spend) ÷ ad spend × 100 ROAS = revenue ÷ ad spend Cost per conversion = ad spend ÷ conversions
A 3x ROAS is the same as a 200% ROI: ROI is always the ROAS multiple minus one, shown as a percentage.
What is a good Google Ads ROI?
| ROAS | ROI | Read |
|---|---|---|
| Under 2x | Under 100% | Thin; often break-even after delivery costs |
| 3 to 5x | 200 to 400% | Solid for B2B SaaS search |
| Above 5x | Above 400% | Strong; typical for high-intent, high-ACV terms |
How to improve Google Ads ROI
- Bid to profit, not volume. Target ROI or CPA goals rather than clicks.
- Prioritize high intent. Bottom-of-funnel keywords convert far better.
- Cut waste. Negative keywords and tight match types stop paying for irrelevant clicks.
- Pair with SEO. Ranking organically for the same terms captures clicks you would otherwise buy, lowering blended cost and lifting ROI.
Frequently asked questions
How do you calculate Google Ads ROI?
Google Ads ROI = (revenue − ad spend) ÷ ad spend × 100, where revenue = conversions × revenue per conversion. $8,000 producing 40 conversions worth $600 each is $24,000, a 200% ROI and 3x ROAS.
What is the difference between ROI and ROAS?
ROAS is revenue ÷ spend (a ratio like 3x); ROI subtracts spend first, so 3x ROAS = 200% ROI. ROI is the ROAS multiple minus one, as a percentage.
What is a good ROAS for B2B SaaS Google Ads?
3 to 5x is solid, and high-intent search can go beyond. Judge by cost per acquisition against lifetime value, since SaaS deals are large and recurring.
How can I improve Google Ads ROI?
Focus on high-intent keywords, improve landing-page conversion, add negatives to cut waste, bid to profit targets, and pair ads with SEO to lower blended cost per click.