Question 1

What is ROAS?

Accepted Answer

ROAS (Return on Ad Spend) measures how much revenue you generate for every dollar spent on advertising. It's calculated as Revenue divided by Ad Spend. For example, if you spend $1,000 on ads and generate $5,000 in revenue, your ROAS is 5:1.

Question 2

What is POAS?

Accepted Answer

POAS (Profit on Ad Spend) shows how much profit you make for every dollar spent on advertising, after accounting for product costs. It's calculated as Campaign Profit divided by Ad Spend. POAS is often more useful than ROAS because it accounts for your margins, not just revenue.

Question 3

What is a good ROAS?

Accepted Answer

Generally, a ROAS of 2:1 or higher is considered acceptable, 2:1 to 4:1 is good, and above 4:1 is excellent. However, the ideal ROAS depends on your industry, profit margins, and business goals.

Question 4

How do you calculate Campaign Profit?

Accepted Answer

Campaign Profit is calculated as: Revenue - Ad Spend - Cost of Goods Sold (COGS). This shows your actual profit from the advertising campaign after accounting for both the advertising costs and the direct product costs.

Question 5

Is this calculator free to use?

Accepted Answer

Yes, the ROAS & POAS Calculator is completely free to use. No registration or payment required.

📈 ROAS & POAS Calculator

Results

ROAS

Campaign Profit

Campaign Margin

POAS

Understanding Your Metrics

ROAS (Return on Ad Spend)

POAS (Profit on Ad Spend)