> For the complete documentation index, see [llms.txt](https://helpcenter.channable.com/llms.txt). Markdown versions of documentation pages are available by appending `.md` to page URLs; this page is available as [Markdown](https://helpcenter.channable.com/manage-improve-product-data/insights/profit-on-ad-spend.md).

# Profit on Ad Spend

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### Get started

Use Profit on Ad Spend to measure profitability, not just revenue.

Understand how POAS works, how Channable calculates it, and where you can use it.
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***

#### Start using Profit on Ad Spend

<table data-view="cards"><thead><tr><th></th><th></th><th></th><th data-hidden data-card-target data-type="content-ref"></th></tr></thead><tbody><tr><td><i class="fa-gear">:gear:</i></td><td><strong>Set up Profit on Ad Spend</strong></td><td>Mark one or more project fields as POAS cost fields and start using the metrics.</td><td><a href="/spaces/u8whzIfip72Kvn3M1bsc/pages/7c9f9a7abec2d58d9a9316f2d211ef5eda1a149f">/spaces/u8whzIfip72Kvn3M1bsc/pages/7c9f9a7abec2d58d9a9316f2d211ef5eda1a149f</a></td></tr><tr><td><i class="fa-code">:code:</i></td><td><strong>Use POAS metrics in rules</strong></td><td>Apply profit-based Insights metrics in rules to label and optimize products automatically.</td><td><a href="/spaces/u8whzIfip72Kvn3M1bsc/pages/ec89b09695a0213fcb16d5ab622897980e896002">/spaces/u8whzIfip72Kvn3M1bsc/pages/ec89b09695a0213fcb16d5ab622897980e896002</a></td></tr><tr><td><i class="fa-circle-question">:circle-question:</i></td><td><strong>Read the POAS FAQ</strong></td><td>Get answers about cost fields, segmentation, dashboard data, and common POAS questions.</td><td><a href="/spaces/u8whzIfip72Kvn3M1bsc/pages/992bc4bb293572b27dcd8d08419a3b6050aba361">/spaces/u8whzIfip72Kvn3M1bsc/pages/992bc4bb293572b27dcd8d08419a3b6050aba361</a></td></tr></tbody></table>

### Learn more about Profit on Ad Spend

<details>

<summary><strong>What Profit on Ad Spend means</strong></summary>

Revenue on Ad Spend, or ROAS, focuses only on revenue generated by ads.

Profit on Ad Spend, or POAS, goes further. It shows how much actual profit your advertising generates.

Unlike **ROAS**, **Profit on Ad Spend** also considers associated costs such as product costs, shipping, payment fees, and other expenses. This gives you a clearer view of ad effectiveness.

</details>

<details>

<summary><strong>Compare ROAS, profit, and POAS</strong></summary>

These simplified formulas show the difference:

* **Revenue on Ad Spend (ROAS)** = (Revenue / Ad Cost) × 100%
* **Profit** = Revenue — All Costs
* **Profit on Ad Spend (POAS)** = (Profit / Ad Cost) × 100%

Calculating fully accurate profit is difficult because most teams do not have access to every cost at product or order level.

Even a simplified profit calculation, such as using buying price only, gives you more transparency than revenue alone.

</details>

<details>

<summary><strong>How Profit on Ad Spend works in Channable</strong></summary>

You can use **Gross profit**, **Net profit**, and **Profit on Ad Spend** at product level in Channable.

You can select one or more cost fields to include in the calculation.

#### Formulas we use

* **Gross profit** = Conversion value — (POAS Cost field 1 + POAS Cost field 2 + …) \* Conversions
* **Net profit** = Gross profit — Ad Cost
* **Profit on Ad Spend** = Gross profit / Ad Cost \* 100%

</details>

<details>

<summary><strong>Availability</strong></summary>

**Profit on Ad Spend** metrics are only available on Google Ads Insights dashboards.

</details>


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