Free calculator

POAS calculator

Q: What is a good POAS?

Break-even POAS is 1.0 (100%). Most brands target above break-even — often 1.2–2.0 — to cover fixed costs and desired profit. See the break-even ROAS tool for margin-band floors.

Q: Is POAS the same as ROAS?

No. ROAS = revenue ÷ ad spend. POAS = gross profit ÷ ad spend. High ROAS with low margin can still lose money.

Q: Can I use this for Google Ads tROAS?

This tool estimates POAS from averages. For Smart Bidding, upload profit-weighted conversion values from your store with Profit Bid.

Enter revenue, ad spend, and average margin to see Profit on Ad Spend, ROAS, and net profit after ads — before you change a single bid.

How this POAS calculator works

POAS (Profit on Ad Spend) = gross profit ÷ ad spend. Gross profit here is revenue × average margin %. When POAS is at or above 1.0, ad spend is covered by gross profit at the margin you entered.

ROAS only looks at revenue. Two campaigns with the same ROAS can have very different POAS if one sells thin-margin SKUs and the other sells high-margin products.

POAS ≥ 1 → ads cover gross profit at this margin.
POAS < 1 → you are buying revenue that loses money after cost of goods.
Use product-level margins in Profit Bid for live bidding — not one blended store average.

From calculator to live bidding

A blended calculator is a diagnosis tool. Smart Bidding needs order-level profit values and catalog labels so Google and Meta learn which SKUs actually make money.

Frequently asked questions

What is a good POAS?

Break-even POAS is 1.0 (100%). Most brands target above break-even — often 1.2–2.0 — to cover fixed costs and desired profit. See the break-even ROAS tool for margin-band floors.