Free tool · no login

POAS calculator: profit on ad spend

Enter ad spend, the revenue those ads brought and the variable costs of the orders to get profit on ad spend, gross profit and what is left after the ads.

Medication, consult, pharmacy, shipping, payment fees, refunds.

My numbers

Save your own numbers once and reuse them in every calculator. They stay in this browser; nothing is sent to us.

Which numbers are saved?
  • First-order revenue per patient (AOV): not saved
  • Medication / product cost per order (COGS): not saved
  • Clinician consult cost per patient: not saved
  • Pharmacy dispensing / fulfillment fee: not saved
  • Shipping per order: not saved
  • Payment processing: not saved
  • Refund + chargeback rate: not saved
  • Monthly churn: not saved
  • Patient acquisition cost (CAC): not saved
  • Monthly ad spend: not saved

Profit on ad spend

Enter your numbers to see the result.

Free tool by Telehealth Media · telehealthmedia.com

Build the variable costs line by line in the break-even ROAS calculator.

How it works

POAS replaces revenue with gross profit. It answers whether the ads paid for themselves out of what the orders actually earned.

  • Gross profit = revenue - variable costs
  • POAS = gross profit / ad spend
  • Left after ad spend = gross profit - ad spend

A POAS of 1 means the ads exactly paid for themselves. Above 1 the ads added gross profit; below 1 they cost more than they earned.

In telehealth, variable costs include medication, the consult, the pharmacy fee, shipping, payment processing and refunds. Two campaigns with the same ROAS can have very different POAS if they sell different treatments.

Worked example

A campaign spent 10,000 USD and brought 32,000 USD of revenue. Those orders cost 14,000 USD to deliver.

Worked example
StepCalculationResult
Gross profit32,000 - 14,00018,000 USD
POAS18,000 / 10,0001.80x
Left after ads18,000 - 10,0008,000 USD

These numbers illustrate the formula; enter your own.

Telehealth notes

  • POAS on the first order is often below 1 for subscription treatments, by design. Add expected refill gross profit to see the full picture.
  • If you sell several treatments, compare POAS by treatment: a high-ROAS treatment with expensive medication can earn less than a lower-ROAS one.

Questions

What is POAS?

Profit on ad spend: gross profit from the orders an ad brought, divided by what the ad cost.

Is POAS better than ROAS?

POAS is closer to profit because it removes the cost of delivering each order. ROAS is easier to get from ad platforms. Use both.

Are my numbers stored?

No. The calculation runs in your browser and nothing is sent to us.