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POAS

How much profit every unit of ad spend brings in.

How it works

The same as ROAS, only on profit instead of revenue. It answers the question ROAS cannot get around: did the shop earn on this advertising, or just churn the money.

It is only counted where the cost of goods is known. The portal does not know it — so POAS is counted on the shop’s side, and we supply the raw numbers for it.

Formula

Profit from orders ÷ spend

Example

The tableware shop: revenue of 180,000 at a 35% markup gives a profit of 63,000, spend 40,000.

POAS = 63,000 ÷ 40,000 = 1.6. At a ROAS of 4.5 the advertising is still in the black — but the room is far smaller than ROAS makes it look.