New Customer Value Calculator for Google Ads customer acquisition
Work out the extra value for new customers in Google Ads, its effect on ROAS and the target to use.
- Free to use
- Runs in your browser
- No sign-up
Your new customer value appears here
Enter your first order, margin and repeat orders, or try the example: an online tea shop.
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About the New Customer Value Calculator
Enter your average first order, gross margin, how many new customers buy again and how often, or a customer lifetime value you already know, and the bidding mode you plan for Google Ads' new customer acquisition goal. The calculator works out the extra conversion value to set for a new customer, what it does to your reported ROAS, the target ROAS to use so lifetime value is counted only once, and break-even with the 18% GST. You also get the requirements, how Google tells new from existing customers, the set-up steps and a summary to copy. It runs in your browser.
How it works
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Step 1
Enter your first order value, gross margin and repeat orders (or your lifetime value), or press "Try an example".
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Step 2
Pick the bidding mode, campaign type, bid strategy and how Google will know your existing customers, and add a month of spend and purchases if you want the ROAS figures.
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Step 3
Enter the extra value in the goal, set Target ROAS from the figures shown, fix what the checks flag and copy the summary.
How the new customer goal works
Google Ads can bid higher for new customers than for existing ones (New Customer Value) or only bid for new customers (New Customer Only), in Search, Performance Max, Shopping and Demand Gen campaigns. New Customer Value needs a Purchase conversion goal and works with Target ROAS or Maximize conversion value. Google tells new from existing customers with its own detection from up to 540 days of purchases, your Customer Match or buyer lists, or a new or returning value in your purchase tag.
How we work out the extra value
Google suggests thinking about a customer's expected lifetime value and choosing a fraction of it you are comfortable with. We take what a new customer brings after the first order: the share who buy again, times their repeat orders, times the typical repeat order, then the share you choose. Google adds the extra value to the conversion value of each new customer's purchase, so reported ROAS rises and the target needs to rise with it, or you count future orders twice.
What this calculator cannot do
It works from your own averages, so it cannot see your account, your customers or which ones Google will class as new. The extra value, the adjusted target and break-even are our maths, not Google's, and real repeat rates change with season and product. It does not sign in to Google Ads. Check the goal settings and reports in your account, and adjust the value after a few weeks of data.
Frequently asked questions
What value should I set for new customers in Google Ads?
Google suggests basing it on a customer's expected lifetime value and choosing a fraction you are comfortable with; if you are unsure, Google offers a recommended value based on your average order value. This calculator uses the revenue, or gross profit, a new customer brings after the first order, and our suggestion is to start with half of it.
Does the new customer value change my reported ROAS?
Yes. Google adds the extra value to the conversion value of each new customer's purchase, so conversion value and ROAS go up although sales do not. The "New customer lifetime value" column shows only the added part. Raise Target ROAS to match, or Google will spend more for each real rupee of sales.
Which campaigns can use the new customer acquisition goal?
Google lists Search, Performance Max, Shopping and Demand Gen for both bidding higher for new customers and bidding only for new customers. High Value New Customer is for Search and Performance Max. Performance Max for store goals works only with New Customer Only.
How does Google know who is a new customer?
By default Google detects it from your tracked purchases over up to 540 days. You can do better with a Customer Match list of past buyers shared with the account, a tag-based list, or by sending new or returning with each purchase in your Google tag. Google warns that lists with fewer than 1,000 members may affect the goal.
Should I bid only for new customers?
Google recommends New Customer Only only when you have a strict budget for new customers or a non-purchase goal such as leads, and advises a separate campaign for existing customers. If it under-serves, Google suggests switching to bidding higher for new customers, which does not limit reach.
Related reading
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