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POAS Calculator (Profit on Ad Spend)

Calculate POAS — profit on ad spend — from ad spend, revenue, product cost and variable costs, and compare it with ROAS, break-even ROAS and the profit left after advertising.

Ad spend

Revenue attributed to the ads

Cost of goods for those sales

Other variable costs

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How it works

Gross profit = revenue − cost of goods − other variable costs · POAS = gross profit ÷ ad spend · ROAS = revenue ÷ ad spend · Profit after ads = gross profit − ad spend · Break-even ROAS = revenue ÷ gross profit

ROAS measures revenue per unit of ad spend, but two campaigns with the same ROAS can have very different profit if their products carry different margins. POAS divides the gross profit those ads generated by what the ads cost: above 1 the ads more than pay for themselves, exactly 1 is break-even, and below 1 every sale loses money once advertising is counted. POAS does not include fixed overheads, so aim comfortably above 1 to cover them.

Worked example

$5,000 of ads produced $20,000 of sales that cost $9,000 in goods and $2,000 in shipping and fees, leaving $9,000.00 of gross profit. POAS = $9,000 ÷ $5,000 = 1.80 and ROAS = 4.00. After paying for the ads $4,000.00 of profit remains, and the break-even ROAS for this margin is 2.22.

Sources: ProfitMetrics — What is POAS · Google Ads Help — Return on ad spend (ROAS)

Frequently asked questions

How do you calculate POAS?

Subtract product costs and other variable costs from the revenue your ads generated to get gross profit, then divide by the ad spend. $9,000 profit ÷ $5,000 spend = POAS 1.8.

What is a good POAS?

Anything above 1 means the ads are profitable before fixed costs. Many stores target 1.2–2 or more so the extra profit also covers overheads; new-customer campaigns can run nearer 1 if repeat purchases follow.

What is the difference between POAS and ROAS?

ROAS uses revenue, POAS uses profit. A 4× ROAS on a 25% margin product (POAS 1.0) only breaks even, while a 3× ROAS on a 60% margin product (POAS 1.8) is very profitable.

How do I convert POAS to break-even ROAS?

Break-even ROAS = 1 ÷ gross margin (revenue ÷ gross profit). With a 45% margin it is 2.22; any ROAS above that gives a POAS above 1.

Related calculators

ROAS Calculator

Calculate return on ad spend (ROAS) as a ratio and a percentage, with a quick verdict on whether the campaign pays.

ROAS Breakeven Calculator

Find the breakeven ROAS and maximum cost per sale for your product — the exact ad efficiency and CPA where a paid campaign stops losing money.

Ad Break-Even ROAS Calculator

Find the return on ad spend you must hit just to break even, from your product margin — plus the matching break-even ACoS and profit-target ROAS.

Contribution Margin Calculator

Calculate contribution margin per unit, contribution margin ratio and total contribution from price, variable cost and units sold.

Ad Budget Calculator

Work backwards from a sales goal to the ad budget you need: orders, clicks, monthly and daily budget, CPA, expected ROAS and profit after ad spend for Google, Meta or any pay-per-click campaign.

Planning estimate only. Real results depend on your actual costs, prices, taxes and market — check the figures with your accountant or adviser before making business decisions.