Free Ad Profit Calculator and Formula.
The honest number that ROAS hides. Enter revenue, ad spend, and product cost. See real profit, profit per dollar of ad spend, and your break-even point.
Calculate your Ad Profit
Enter revenue, ad spend, and the cost of goods. The result updates as you type.
Three lines, the truth.
Real profit = Revenue - Ad spend - Product cost. The number that hits your bank, before overhead. Most operators stop at ROAS and miss the COGS half of the equation.
Profit per $1 ad spend = Profit ÷ Ad spend. The cleanest read on whether the campaign is making money. Positive means yes. Negative means stop, no matter what ROAS reports.
Profit margin on revenue = Profit ÷ Revenue. Useful for comparing campaigns at different scales. A campaign at 20 percent profit margin is a healthier engine than one at 5 percent, even if absolute profit is larger.
A Shopify store with 38 percent COGS.
Real profit equals 18,900 minus 4,200 minus 11,670, which is $3,030.
Profit per $1 ad spend equals 3,030 divided by 4,200, which is $0.72. Every dollar of ad spend produced $0.72 of bottom-line profit.
Read. ROAS would report 4.5x on this campaign, which sounds healthy. But after COGS, the real profit margin is 16 percent. Healthy for ecom, fragile under cost pressure. If COGS rises 5 percent or AOV drops 5 percent, the campaign moves below break-even.
Ad Profit questions, answered.
Why is Ad Profit different from ROAS?
ROAS reports revenue per dollar of ad spend, ignoring COGS. Ad Profit subtracts COGS so you see the cash that actually hits your bank. A campaign with 4x ROAS at 70 percent COGS still loses money.
Should I include shipping and payment fees in product cost?
Strict version, yes. Include shipping, payment processing (2.9 percent + $0.30 for Stripe is typical), pick-and-pack labor, and returns. These are real costs that come off every order.
What is a healthy profit per dollar of ad spend?
For ecom, $0.30 to $0.80 is a working range. Above $1 is exceptional. Below $0 means stop. For SaaS, payback period is the better metric because LTV happens over months not days.
How does Ad Profit compare to POAS?
POAS (Profit on Ad Spend) is Profit ÷ Ad spend, the same ratio Ad Profit calls 'profit per $1 ad spend'. Ad Profit also reports absolute profit, which POAS does not.
Why does my profit drop when ROAS rises?
Usually because the high-ROAS sales are low-margin SKUs. Revenue grows, COGS grows proportionally faster, real profit shrinks. Fix is to bid harder on SKUs with strong margins, not on the ones with strong ROAS.
Ask Claude for real profit, not just ROAS.
PaidSync pulls ad-side numbers from your live accounts. Plug your COGS in from your store backend and ask Claude for the honest profit, not the ROAS that hides it.