POAS Calculator
Profit on Ad Spend (POAS)
See what your ads actually earn after product costs, shipping and fees – not just how much they sell.
A POAS of 1.0 means your ads exactly pay for themselves. Everything above 1.0 is profit your ads generate on top of their own cost.
Ads selling but not making money? We set up profit-based tracking and bidding so Google Ads and Meta optimise for profit, not just revenue.
Get a Free Quote →What Is POAS (Profit on Ad Spend)?
POAS, or profit on ad spend, measures how much gross profit your advertising generates for every krona, euro or dollar you spend on ads. Where ROAS counts revenue, POAS counts what is actually left after product cost, shipping, payment fees and other costs that come with each order. It answers the question every business owner really cares about: are my ads making money?
How to Calculate POAS
Gross profit is the revenue from your ads minus the variable costs of those orders: cost of goods, shipping, packaging, payment fees and returns.
Example: you spend 10,000 SEK on ads and they bring in 40,000 SEK in revenue. The products, shipping and fees for those orders cost 26,000 SEK, so your gross profit is 14,000 SEK. Your ROAS is a healthy-looking 4.0, but your POAS is 1.4 – for every krona spent on ads you keep 1.40 SEK of gross profit, or 0.40 SEK after paying for the ads themselves.
What Is a Good POAS?
- Below 1.0 – you lose money on every sale once the ad cost is paid.
- Exactly 1.0 – break-even. The ads pay for themselves, but nothing more.
- Above 1.0 – profitable. How far above you need to be depends on your fixed costs, such as salaries, rent and software.
Some businesses deliberately accept a POAS below 1.0 on the first order to win customers who buy again later. That can be a smart strategy, but only if you know your repeat purchase rate and customer lifetime value.
POAS vs. ROAS
ROAS is popular because ad platforms report revenue out of the box. The problem is that two products with the same ROAS can have completely different profitability. A 4x ROAS on a product with a 20% margin gives a POAS of 0.8 – you are losing money. The same 4x ROAS on a product with a 60% margin gives a POAS of 2.4 – very profitable. POAS removes that blind spot. Want to see your revenue-based numbers too? Try the ROAS calculator.
How to Optimise Your Ads for Profit
- Send profit instead of revenue as the conversion value. When Google Ads or Meta receives profit per order, smart bidding starts optimising for profit rather than turnover.
- Split campaigns by margin. Group high-margin and low-margin products so each group gets a target that fits its economics.
- Lower bids on low-margin products. Products that sell well but barely make money often eat a large share of the budget.
- Keep an eye on shipping and returns. Free shipping and high return rates can quietly turn a profitable campaign into a loss-maker.
Frequently Asked Questions
What is the difference between POAS and ROAS?
ROAS divides ad revenue by ad spend. POAS divides the gross profit from those sales by ad spend. ROAS tells you how much you sell; POAS tells you how much you earn.
Which costs should I include when calculating POAS?
Include the variable costs that come with each order: cost of goods, shipping, packaging, payment fees and returns. Fixed costs such as rent and salaries are usually left out.
Can I bid on POAS in Google Ads?
Not as a built-in metric, but you can report profit as the conversion value and use Target ROAS bidding. Google then effectively bids towards a profit target instead of a revenue target.
Want Ads That Make a Profit?
Stipe Kakic is a certified Google Partner who sets up profit-based tracking and bidding for Google Ads and Meta. You keep full ownership of your ad accounts and get clear reporting throughout. Get a free quote to see where your campaigns stand.