POAS stands for Profit on Ad Spend. 

It is the true measure of your advertising efficiency.

While ROAS (Return on Ad Spend) tells you how much revenue your ads generated, POAS tells you how much gross profit those ads actually contributed to the business.

The formula is simple but powerful:

POAS = Profit / Ad Spend

If your POAS is above 1.0 (or 100%), you are profitable on that spend. 

If it is below 1.0, you are losing money, regardless of how high your ROAS looks.

It cuts through the vanity metrics to show you the financial reality of your marketing.

-1. Determine True Profitability: Instantly get an overview of whether your current advertising efforts are actually making money or just churning cash. It answers the ultimate question: "Can I scale this spend without going broke?"

-2. Channel-Level Clarity: By inputting data specific to a single channel (e.g., just Meta spend and Meta-attributed revenue), you can see which platforms are driving profit and which are dragging you down.

3. The ROAS Reality Check: See for yourself why ROAS is not a true reflection of performance. 

You might have a "healthy" ROAS of 4.0, but after COGS and fees, this calculator might reveal a POAS of 0.8 — meaning you are losing money on every sale.

Our calculator is the most accurate free POAS calculator, provided the data you input is precise.

Because this is a manual calculator, it relies on the specific snapshot of data you provide right now. It likely assumes a "generic" or average margin across all your products, which changes constantly as your product mix shifts.

To get 100% accuracy, you need real-time automation. Reaktion connects directly to your store to pull individual product-level COGS in real-time. 

This means:

-1. We don't use generic margins; we calculate the exact profit on every single order.

-2. You can see POAS at Campaign, Ad Set, Product, and even Creative level.

-3. You can send this data back to your ad platforms and optimize the smart-bidding algorithm for profit, not revenue.

-4. We factor in Customer Lifetime Value (CLV) to show long-term profitability.

Stop guessing with averages. Connect your store to Reaktion for free to see your live, penny-perfect POAS updated every second. 

Try Reaktion for Free.