Google Ads will calculate target ROAS from your margin
In brief
- On October 6, 2026 Search Engine Land described a new feature in Google Ads: you enter your campaign margin and the system suggests a ROAS target.
- At a 15% margin the calculator shows 667%, which is PLN 6.67 in revenue for every zloty spent on ads just to break even.
- On top of that, a weekly forecast of clicks, spend and profit before you save the change.
- It is a beta on individual accounts, with no announcement from Google and no date for Poland. You can work out your own break-even point today: 100 divided by your margin in percent.
Google Ads is learning to calculate target ROAS from your margin instead of making you guess the percentage. The feature was described on October 6, 2026 by Search Engine Land: you enter the average campaign margin calculated without ad cost, and the system converts it into a target and shows a weekly forecast of clicks, revenue, spend and profit. One field in the dashboard, and the point of reference moves from revenue to profit.
Target ROAS in Google Ads calculated from your margin
Until now the target came from account history: it worked out to 450%, so let's enter 500%. The trouble is that 500% at a 40% margin is profit, while at a 12% margin it means paying out of pocket on every order. The column in the dashboard glows green while the business account shrinks.
In the beta you enter your margin, and the Target ROAS strategy gets a target calculated from the break-even point. For a 15% margin that is 667%. If you do not know your margin, you answer a few questions and the system estimates it for you. All of it rests on an assumption you need to check on your own account: that the conversion value you send to Google is revenue, not an amount with VAT included.
15% margin from Google's example
667% ROAS at the break-even point
PLN 6.67 in revenue for every zloty spent
You can run the same math today, without the beta. Work out your margin in the margin calculator, and your campaign break-even point in the ROAS calculator.
Who this affects in Poland
Every business that advertises in Google Ads and sends conversion value: a shop, a repair garage, a clinic selling packages. Most of all the ones that keep a product at a 10% margin and a product at a 45% margin in the same campaign, because a shared target hurts one of those groups.
Example
A bike accessories shop does PLN 60,000 in revenue a month at a 22% margin, which is PLN 13,200 before ad cost. Its break-even point is 100 divided by 22, so a ROAS of 455%. At a target of 400% it will spend PLN 15,000 to bring in that revenue and end the month PLN 1,800 in the red. This is a sample calculation, not data from a real account.
What this means for your business
Google hands you a number, but it still only knows what you send it. If you count conversion value gross or with shipping included, the calculator will do the math correctly on bad data and give you a target lower than the one you need. It is a second pair of eyes on your bid, not a free pass from the margin spreadsheet. The businesses that gain the most are the ones that split their products into margin groups first.
What to do now
The beta may reach your account in a month or in a year, but this work pays off right away. We covered the basics of the settings in our piece on how to start advertising on Google without burning through your budget. The same numbers are the starting point for our Google Ads campaign management.
- Work out your margin after variable costs. From the net price subtract goods or materials, payment processing fees, shipping and packaging. Do not subtract ad cost.
- Find your break-even point. 100 divided by your margin in percent: a 20% margin means a ROAS of 500%, a 30% margin means 333%, a 50% margin means 200%.
- Check what reaches Google as conversion value. Gross amounts, shipping added in and conversions counted twice inflate ROAS, and then every target rests on a false base.
- Set the target above your break-even point. Add the margin you want to live on, then move the target by 10 to 20% at a time and give the campaign two weeks.
What we still do not know
Google has not published an announcement, and the reports are coming from individual accounts. There is no word on when the calculator will reach Polish accounts, whether it will cover Performance Max and Shopping campaigns, or whether the forecast accounts for returns and discounts. It is also an open question whether you enter the margin once for the account or separately for each campaign.
Note
A target equal to the break-even point means zero profit from advertising. Out of the PLN 13,200 margin from the example shop you still have to pay for the warehouse, the accounting and your own salary.
If you want to check whether your account sends Google the real amounts, book a free campaign audit or call 511 608 362 (Mon to Fri, 10 am to 6 pm).
Frequently asked questions
What is the difference between ROAS and margin?
ROAS tells you how much revenue a zloty spent on ads brings in. Margin tells you how much of that revenue is left after the cost of goods and shipping. Only both numbers together show whether a campaign makes money.
Does a high ROAS always mean profit?
No. At a low margin even 600% ends in a loss, while at a 60% margin a campaign with a ROAS of 250% makes money. What counts is how the target relates to your break-even point, not how high the percentage is.
What should I do before I raise my ROAS target?
Fix what happens after the click, because a shorter path to purchase lifts revenue from the same traffic. We put it all together in our guide on how to increase sales without more traffic.
