ROAS & POAS Calculator
Calculate your Return on Ad Spend (ROAS) or Profit on Ad Spend (POAS) to measure advertising campaign profitability and optimize your ad budget.
Account for profit margins (COGS)
Enter your revenue and ad spend to calculate ROAS
Related Resources
ROAS vs ROI: Understanding the Difference
When to use ROAS vs ROI for measuring campaign performance.
ROAS vs POAS: Which Should You Track?
Understand when profit-based metrics matter more than revenue.
Google Ads Analytics Guide
Extract deeper insights from your paid search campaigns.
Marketing ROI Calculator
Calculate overall marketing return on investment.
Frequently Asked Questions
What is ROAS?
ROAS (Return on Ad Spend) measures the revenue generated for every dollar spent on advertising. A ROAS of 4.0 means you earn $4 for every $1 spent on ads.
What is POAS and how is it different from ROAS?
POAS (Profit on Ad Spend) measures gross profit generated per dollar of ad spend, accounting for the cost of goods sold (COGS). While ROAS shows revenue return, POAS shows actual profit return, making it more accurate for profitability decisions.
What is a good ROAS?
A good ROAS varies by industry and margins. Generally, 3:1 to 4:1 is considered healthy for most businesses. E-commerce with low margins might need 5:1+, while high-margin services might profit at 2:1.
When should I use POAS instead of ROAS?
Use POAS when you have variable product margins or when optimizing for profitability rather than revenue. POAS is especially valuable for e-commerce, retail, and any business with significant COGS.
How do I calculate break-even ROAS?
Break-even ROAS = 1 / Profit Margin. If your profit margin is 25%, break-even ROAS is 1/0.25 = 4.0. Any ROAS above this means you're profitable on ad spend.