Free calculator

Ad profit calculator

Enter revenue, cost of goods, and ad spend to estimate gross profit and net profit after ads — the number ROAS dashboards hide.

How ad profit is calculated

Gross profit ≈ revenue − COGS (or revenue × margin). Net profit after ads ≈ gross profit − ad spend. That residual is what funds overhead, growth, and owner profit.

This blended estimate is a planning tool. Live bidding should use order-level COGS and attributed profit uploads.

Gross profit = revenue − COGS
Ad profit ≈ gross profit − ad spend
POAS = gross profit ÷ ad spend

Frequently asked questions

What is ad profit?

Ad profit (here) means contribution after advertising: gross profit from attributed sales minus ad spend. It shows whether paid traffic covers product cost and media cost.

How do you calculate ad profit?

Subtract COGS from revenue to get gross profit, then subtract ad spend. Example: $50,000 revenue, $30,000 COGS, $8,000 ads → $12,000 gross profit and $4,000 after ads.

What is a good ad profit?

Positive after-ad profit is the minimum. Most brands also need enough left for fixed costs and target net margin. Track POAS above 1.0 with a buffer rather than chasing revenue alone.