The POAS formula
At its core: POAS = Gross Profit ÷ Ad Spend. Express as percentage (180% POAS) or ratio (1.8× profit on spend). Use the same attribution window as your ad platform for fair comparison.
Calculating gross profit per order
Start with order subtotal after discounts. Subtract product COGS (sum of unit cost × qty). Subtract payment processing fees, packaging, and any shipping cost you subsidize beyond what the customer paid.
Apply refunds proportionally when they post — POAS for a week should restate if big returns land later.
Attribution and ad spend
Use platform-reported spend for the same date range as orders. For blended accounts, split POAS by channel (Google, Meta, etc.) before merging — otherwise strong Google POAS hides weak Meta POAS.
Step-by-step
Follow these in order — each step builds on the previous one.
- 01
Export ad-attributed orders
Pull orders for your date range with campaign/source from analytics or Profit Bid.
- 02
Compute gross profit per order
Subtract COGS, payment fees, shipping subsidy, and refunds from revenue.
- 03
Sum profit and spend
Total gross profit ÷ total ad spend for the same window and channel.
- 04
Express POAS
Multiply by 100 for percentage. Compare to your breakeven and target bands.
- 05
Automate ongoing
Connect store + ads in Profit Bid so POAS updates daily without CSV exports.
Frequently asked questions
Common questions about this topic — tap to read answers.
Should I include fixed costs in POAS?
Classic POAS uses gross profit before rent and payroll. Some teams define 'contribution POAS' with allocated ops — be consistent and document it.
