Define the numerator before comparing results
ROAS, or return on ad spend, is revenue divided by ad spend. If a campaign produces $5,000 in attributed revenue from $1,000 of advertising, its ROAS is 5.0x. That tells you how much revenue the advertising is associated with. It does not tell you what remains after fulfilling the orders.
WeProfit calculates POAS using revenue minus refunds, product costs, payment fees and shipping, divided by ad spend. This numerator is profit before advertising costs. Net profit then subtracts the advertising cost. Other reports may use different definitions of profit, so compare the formulas as well as the labels.
The same ROAS can produce very different outcomes
Consider two campaigns with $5,000 in attributed revenue and $1,000 in ad spend each. Both report 5.0x ROAS. Their products, refunds and fulfillment costs differ.
Campaign A has $2,000 in product costs, $250 in refunds, $200 in payment fees and $350 in shipping. Those costs total $2,800. Its profit before ad spend is $5,000 minus $2,800, or $2,200. POAS is $2,200 divided by $1,000, or 2.2x. After advertising, $1,200 remains.
Campaign B has $3,300 in product costs, $400 in refunds, $250 in payment fees and $550 in shipping. Those costs total $4,500. Its profit before ad spend is $500. POAS is 0.5x. After the $1,000 advertising bill, its net result is a $500 loss.
The revenue return is identical. The cost picture changes which campaign appears capable of supporting more spend. These illustrative calculations assume that the revenue, attribution and cost inputs are complete and comparable.
Read the break-even point correctly
With WeProfit's formula, 1.0x POAS means profit before ad spend exactly covers advertising. Below 1.0x, the included costs and advertising exceed revenue. Above 1.0x, a positive amount remains after those costs.
That threshold does not establish whole-business profitability. Costs missing from the calculation still matter. Rent, salaries or other overhead may need separate consideration. A profitable historical campaign also does not guarantee that its next dollar of spend will earn the same return.
Check the inputs before trusting the ratio
WeProfit labels product-cost coverage as exact, partial or estimate. An uncovered product can use a configured percentage estimate, so a precise-looking ratio can still rest on approximate costs. The coverage label describes product-cost evidence; it does not certify every business expense.
- Enter or import product and variant costs, and review uncovered products.
- Set payment fees and shipping assumptions to reflect your operation.
- Check that refunds are reflected in the period and orders you are reviewing.
- Verify connected ad spend and compare equivalent date ranges and currencies.
- Inspect attribution confidence and apply URL templates when evaluating campaign detail.
Use both numbers when reviewing campaigns
ROAS provides a quick revenue comparison. POAS helps you see how costs change that picture. Review them alongside net profit, order volume and cost coverage. If a campaign looks strong on revenue but weak on profit, investigate product mix, refunds, shipping and fees before deciding that a larger budget will improve the result.