Profit-focused advertising calculator

POAS Calculator

Use this POAS calculator to estimate how much contribution profit your ads generate for each dollar spent. Enter attributed revenue, product cost and other variable costs to see profit before ads, POAS, and the contribution left after ad spend. The result is a model based on your inputs, not a connection to an ad account.

Calculate profit on ad spend

Use one campaign, product group, and reporting period for every amount.

Ad spend

Advertising cost for the same scope and date range.

Attributed revenue

Revenue credited to the ads you are evaluating.

Product cost (COGS)

Cost of goods tied to the attributed sales.

Other variable costs

Optional total for these sales: shipping, fees, discounts or refunds not already included.

Display currency

This changes the symbol and number format; it does not convert values.

Your POAS results

POAS

1.5×

Contribution per $1 of ad spend

POAS is above 1. The modeled contribution covers ad spend before fixed overhead and taxes.

Contribution before ads: $1,500.00
Contribution after ads: $500.00

How to use the POAS calculator

The calculation is most useful when revenue, costs and spend describe the same campaign or product group over the same period.

1. Match the reporting scope

Choose the campaign, product set, attribution window and dates you want to review. Use attributed revenue for that scope, not total store revenue paired with one campaign’s spend.

2. Enter costs before advertising

Enter product cost and the total of other costs that vary with these sales, such as shipping, fees, discounts or refunds. Avoid double counting.

3. Read POAS with the dollar result

POAS shows contribution per advertising dollar. Check contribution after ads as well: a ratio can look efficient while the total dollars generated are too small to support the business.

POAS formula and inputs

POAS (profit on ad spend) compares contribution profit generated by advertising with the ad spend required to generate it. This calculator treats profit as attributed revenue after the variable costs you enter, but before ad spend.

POAS = (attributed revenue − COGS − other variable costs) ÷ ad spend

Contribution before ads

Subtract product and other included variable costs from attributed revenue. This numerator is the amount available to pay for advertising and then contribute toward fixed business costs.

Contribution after ads

Subtract ad spend from contribution before ads. It is an estimate for the selected inputs, not full net income, because fixed expenses and taxes are not part of this tool.

Use consistent attribution

Ad platforms can credit different orders under different click or view windows. Keep revenue attribution and spend on the same reporting basis before comparing campaigns.

Worked POAS example

Suppose one campaign reports $3,000 in attributed sales. The orders cost $1,500 to source, and there are no additional variable costs in this example. Ad spend for the same period is $1,000.

The 1.50× result means the modeled sales produced $1.50 of contribution before ads for each $1 of ad spend. After paying the $1,000 ad cost, $500 remains before fixed expenses and taxes.

Attributed revenue	$3,000
Less product and other variable costs	$1,500
Contribution before ads	$1,500
Ad spend	$1,000
POAS	1.50×
Contribution after ads	$500

POAS vs ROAS: what each number tells you

Both ratios divide a return by ad spend, but the numerator changes the decision. ROAS is revenue-based; POAS uses profit after selected variable costs.

Question	ROAS	POAS
Numerator	Attributed revenue	Contribution before ad spend
Main use	Compare attributed revenue efficiency	Compare contribution generated per ad dollar
Cost awareness	Does not subtract product or order costs	Subtracts the variable costs entered
Break-even reading	Depends on contribution margin	1× on the modeled costs before fixed overhead and taxes

The measures are complementary. Use ROAS for the platform’s attributed revenue view and POAS for a cost-aware contribution view. They are comparable only when scope, period, currency and attribution assumptions match.

Which costs belong in a POAS calculation?

Include costs that are directly tied to the sales in your revenue figure and that vary with those orders. Use one cost definition consistently across campaigns and products.

Product cost

Enter the cost of goods sold for the attributed orders. If product cost differs by SKU, a blended average can hide a high-revenue, low-margin campaign; calculate important products separately when the data allows.

Fulfillment and payment

Shipping, pick-and-pack, payment processing and marketplace fees can be included when they apply to the same orders. Do not count a fee twice if it is already included in your COGS or revenue export.

Discounts, returns and variable support

Use net revenue or add discounts and expected refunds consistently. Include packaging or variable support costs only when it is genuinely variable and you can estimate it from the same sales cohort.

Keep fixed costs separate

Rent, salaried labor, software subscriptions and taxes are normally outside this contribution model. Add them in a separate profit review instead of describing POAS as company-wide net profit.

How to interpret POAS above, at, or below 1

A POAS threshold of 1 is a useful reading only for the profit definition and costs included in the numerator. It is not a universal performance target.

Above 1×

The modeled contribution before advertising is greater than ad spend. Check contribution dollars, fixed costs, returns and cash timing before increasing budget; the ratio alone does not prove a campaign can scale.

At 1×

The selected contribution equals the ad cost. There is no modeled contribution left for rent, salaries, taxes, or other excluded expenses, so this is not necessarily a business-level break-even point.

Below 1×

The entered contribution is lower than ad spend. Review product mix, discounts, fulfillment, attribution and the date window first. A negative POAS can occur when entered variable costs are already greater than attributed revenue.

Limits and assumptions

Use this free POAS calculator as a quick model for campaign review. It does not import platform data or replace an accounting profit-and-loss statement.

The output depends on the revenue, cost and spend figures you enter. The page does not verify that sales were caused by the ads.
Fixed overhead, taxes, financing, inventory timing and future repeat purchases are excluded unless you account for them separately.
Different platforms may use different attribution windows, view-through credit and conversion delays. Do not compare results until those definitions are aligned.
All amounts should use one currency. Changing the currency selector changes formatting only and does not convert the figures.

Formula references

The ROAS baseline follows Google Ads conversion value per cost. The POAS definition follows the first-party ProfitMetrics explanation; providers may define profit fields differently, so keep your cost basis visible.

POAS calculator FAQ

What is POAS?

A POAS calculator estimates contribution profit generated by ads divided by the ad spend. Enter revenue attributed to the ads and subtract the variable costs you want to include before dividing by spend.

How do I calculate POAS?

Subtract product cost and other included variable costs from attributed revenue, then divide the remaining contribution by ad spend. For example, $1,500 contribution before ads divided by $1,000 spend equals 1.50× POAS.

What is the difference between POAS and ROAS?

ROAS divides attributed revenue by ad spend. POAS divides contribution profit after selected variable costs by ad spend, so it reflects margin assumptions that revenue-only ROAS leaves out.

Is a POAS above 1 profitable?

It means the contribution definition entered here is greater than ad spend. It does not guarantee net profit because fixed overhead, taxes, returns, cash timing and other excluded costs may still reduce the result.

Should I include shipping and payment fees in POAS?

Include them when they vary with the attributed orders and are not already included in another cost field. Use the same cost boundary for every campaign you compare and avoid counting any fee twice.

Can I use POAS to compare ad platforms?

Yes, if the revenue attribution window, cost definitions, date range and currency are aligned. Platform-reported conversions may overlap or use different credit rules, so compare the source data before treating the ratios as equivalent.