Google Ads ROAS vs LTV Payback Calculator

Model whether your Google Ads program is profitable by pairing media spend with conversion performance and customer retention. Provide your average order value, conversion rate, monthly budget, and retention period to see conversions, revenue, ROAS, customer acquisition cost, lifetime value, payback timeline, and how far current performance is from your target ROAS.

Gross revenue per conversion driven by the campaign.
Percentage of ad clicks that convert into orders.
Budget you invest in Google Ads each month.
Number of months the average customer keeps buying after the first conversion.
Defaults to $2.50. Used to convert spend into click volume.
Defaults to 60%. Determines contribution margin per repeat purchase.
Defaults to 4×. Compare actual revenue with your ROAS goal.

Estimates assume consistent conversion rates and CPCs. Monitor campaign reporting for actual performance before scaling budgets.

Examples

  • $120 order value, 3.2% conversion, $18,000 spend, 8-month retention, $2.50 CPC, 60% margin, 4× target ⇒ Clicks generated: 7,200.00 • Conversions delivered: 230.40 • Revenue and ROAS: $27,648.00 at 1.54x • Customer acquisition cost: $78.13 • Lifetime contribution per customer: $576.00 • Payback timeline: 1.09 months • Target ROAS 4.00x short by $44,352.00 in revenue.
  • $80 order value, 2.4% conversion, $12,500 spend, 10-month retention, $1.90 CPC, 55% margin, 3× target ⇒ Clicks generated: 6,578.95 • Conversions delivered: 157.89 • Revenue and ROAS: $12,631.58 at 1.01x • Customer acquisition cost: $79.17 • Lifetime contribution per customer: $440.00 • Payback timeline: 1.80 months • Target ROAS 3.00x short by $24,868.42 in revenue.
  • $140 order value, 4.1% conversion, $22,000 spend, 9-month retention, $2.20 CPC, 58% margin, 2.5× target ⇒ Clicks generated: 10,000.00 • Conversions delivered: 410.00 • Revenue and ROAS: $57,400.00 at 2.61x • Customer acquisition cost: $53.66 • Lifetime contribution per customer: $730.80 • Payback timeline: 0.74 months • Target ROAS 2.50x met with $2,400.00 in surplus revenue.

FAQ

How can I model seasonality spikes?

Adjust the conversion rate or order value to reflect seasonal lifts. You can run separate scenarios for peak months versus off-peak averages.

What if I use automated bidding with a target ROAS?

Enter the ROAS goal in the target field. The calculator will show whether your current performance meets or falls short of that threshold and quantify the revenue difference.

Can I plug in recurring subscription pricing?

Yes. Use the average order value as your monthly subscription price and set retention months equal to average subscriber lifespan so lifetime contribution mirrors recurring revenue.

How should I treat retention for one-time purchases?

Set retention months to 1 for one-time transactions. That keeps lifetime value equal to the contribution margin on the initial order and prevents payback from assuming repeat purchases that will never occur.

Can I separate branded and non-branded campaigns?

Yes. Run each campaign type through the calculator with its own CPC and conversion rate, then weight the outputs by spend to see how each mix contributes to overall ROAS and payback.

Additional Information

  • Conversions equal ad spend divided by CPC multiplied by your conversion rate, so lowering CPC or raising conversion rate boosts volume.
  • Lifetime value multiplies average order value by gross margin and the retention months supplied.
  • Payback divides customer acquisition cost by the monthly contribution margin to show how long marketing spend takes to recover.
  • Target ROAS comparison multiplies spend by your goal and subtracts actual revenue to flag the surplus or shortfall.
  • Adjust gross margin to reflect discounts, fulfillment, or partner fees so CAC payback mirrors true contribution.

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