POAS calculator
The real profit from everything you spend on ads, not the sales. The number that says whether a campaign actually makes money.
Change the numbers and the result updates at once.
What does the result mean?
A POAS above 1 means the ads pay for themselves out of gross profit. Below it, every sale from ads loses money.
If the number is above 1.5x
The campaign profits after the cost of goods. Check that the profit also covers shipping and fixed costs.
If the number is below 1x
The campaign loses money even if ROAS looks good. Review which products you advertise, and their margin, before the budget.
How is it calculated?
POAS = (sales from ads − cost of the goods sold) ÷ ad spend.
A campaign that brought 100,000 in sales, with goods costing 40,000, on 20,000 of spend:
(100,000 − 40,000) ÷ 20,000 = 3.00x
ROAS here is 5x, but the real profit is 3 for every 1.
Questions
Why POAS rather than ROAS?
Two products with the same ROAS can differ completely in profit. POAS includes the cost of goods, so it measures what you actually keep.
Where do I find the cost of goods sold?
From each product's cost multiplied by how many were sold from ads. If you do not have it exactly, use your average cost as a share of the selling price.
Does POAS replace the ad profit calculator?
No, they work together. The ad profit calculator gives you the floor before you advertise; POAS measures what actually happened after.
Related tools
Ad profit calculator
The lowest ad return that keeps you from losing, and the most an order may cost.
MER calculator
Your revenue against all your marketing spend, and where you stand.
Profit margin and pricing calculator
The price that gives the margin you want after shipping and payment fees.
The next step.
The result is a starting point. In the Growth Audit we compare it with your store's and campaigns' real numbers.