EStore Tools

POAS Calculator

Judge ads by profit, not revenue: profit on ad spend, break-even ROAS and what's left after ads.

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Your numbers

$

Attributed revenue, excluding tax and shipping charged.

$

After product cost (COGS).

%

Shipping you pay, payment fees, packaging: as a % of revenue.

%

Your result · updates as you type

Profit on ad spend (POAS)

1.54x

Each $1 of ads brings back $1.54 of gross profit. The ads pay for themselves with $2,700 left over.

ROAS (revenue ÷ spend)
4.40x
Break-even ROAS
2.86x
Profit after ad spend
$2,700

POAS above 1.0x means the ads are paying for themselves. If first orders lead to repeat purchases, you can afford to scale.

Breakdown

Attributed revenue
$22,000
Gross profit after product and variable costs
$7,700
Ad spend
−$5,000
Profit after ads
$2,700

POAS vs ROAS

ROAS divides revenue by ad spend, so a campaign selling low-margin products can post a great ROAS and still lose money. POAS divides gross profit by ad spend, so the break-even point is always 1.0x no matter what you sell.

POAS = gross profit from ad-driven sales ÷ ad spend

Example

Ad spend
$5,000
Attributed revenue
$22,000
Margin after product and variable costs
35%
Gross profit
$7,700

POAS = 7,700 ÷ 5,000 = 1.54x. ROAS is 4.4x, and break-even ROAS for this margin is 2.86x.

Putting POAS to work

  • Compare campaigns selling different products. A 3x ROAS on 70% margin products beats a 5x ROAS on 20% margin products, and POAS shows it.
  • Bid on profit. Some stores send each order's gross profit to Google Ads or Meta as the conversion value instead of revenue, so the platform optimises for profit directly.
  • Set limits. Below 1.0x, ads cost more than the profit they bring in unless customers reliably buy again.

Questions people ask

What's a good POAS?

Anything above 1.0x covers its ad cost. How far above you need depends on your fixed costs and how much repeat business first orders bring.

Which costs go into gross profit?

Product cost plus the variable costs of each order: shipping you pay, packaging, payment fees. Leave out fixed costs such as salaries and software.

How do POAS and break-even ROAS relate?

Break-even ROAS is 1 ÷ your margin. At a 35% margin it's 2.86x, which is the ROAS where POAS equals exactly 1.0x.

Should I trust the revenue my ad platform reports?

With caution. Platforms attribute generously. Compare against your store's total revenue with the MER calculator to keep them honest.

Related tools

Break-Even ROAS CalculatorFind the ROAS your ads need to stop losing money, plus break-even CPA and the most you can pay per click.MER CalculatorMeasure all marketing against all revenue, and find the MER you need to break even or hit a profit target.Contribution Margin CalculatorWork out CM1, CM2 and CM3 per order to see what each sale really leaves after product, fulfilment and marketing costs.Discount Break-Even CalculatorSee how many more units you need to sell before a discount actually makes you money.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com
See my work

Last reviewed 29 September 2026.