POAS formula
If contribution profit after ads is $15,000 and advertising spend is $10,000, POAS is 1.50x. The quality of the answer depends on how profit is defined.
Build a consistent profit figure
Begin with net revenue, subtract product, fulfillment, payment, shipping, refunds and ad spend. Do not mix gross profit from one report with contribution profit from another period.
POAS versus ROAS
ROAS measures attributed revenue and can look strong for low-margin products. POAS focuses on the profit remaining after relevant costs, making it helpful for product-level decisions when cost data is reliable.
FAQ
Can POAS be negative?
Yes. Negative POAS means the measured campaign or period produced a contribution loss after advertising.
Does POAS include overhead?
Definitions vary. This calculator uses the contribution profit you enter. Document whether overhead is included before comparing periods.
Read POAS vs. ROAS and verify formulas in our methodology.
Check your complete unit economics
Calculate your break-even ROAS using revenue, product cost, fees, shipping and returns.
Use the Break-even ROAS Calculator