PROAS Calculator
Work out the profit each order makes compared with what your ads cost to win it.
Your PROAS
Enter your revenue per order and CPA to see your PROAS.
What is PROAS?
PROAS (profit on ad spend) compares the profit an order makes with what the ads cost to win it. ROAS only looks at revenue, so a campaign can show a high ROAS and still lose money once product, shipping and fixed costs are paid. PROAS shows whether the ads add to the bottom line.
A PROAS of 1 means the profit before ads exactly pays for the ads. Above 1, the ads make money. Below 1, they lose it.
How PROAS is calculated
The calculator removes VAT from every per-order amount that includes it, spreads your monthly fixed costs over your orders, and takes all of those costs away from your revenue per order. What is left is the profit each order makes before ads:
Profit before ads = revenue − cost of goods − shipping − payment fees − (monthly fixed costs ÷ orders per month)
PROAS = profit before ads ÷ CPA
Profit before ads minus your CPA is the profit each order keeps after paying for the ads that won it.
How to improve your PROAS
- Lower your CPA: better creative, tighter targeting and a higher conversion rate all cut what it costs to win an order.
- Raise your revenue per order with bundles, upsells and free-shipping thresholds.
- Cut the costs that come with every order, such as product and shipping costs.
- Grow your order volume: fixed costs spread over more orders cost less per order.
Worked example
| Revenue per order | $80.00 |
|---|---|
| Product costs (goods, shipping, fees) | $38.00 |
| Fixed costs per order | $5.00 |
| Profit before ads | $37.00 |
| CPA | $15.00 |
| PROAS | 2.47 |
A store's average order brings in $80 before tax. The products cost $28, shipping and fulfilment $8 and payment fees $2. Its fixed costs are $10,000 a month over 2,000 orders, $5 per order. Each order costs $43 and makes $37 before ads.
Its ads cost $15 to win an order, so PROAS = 37 ÷ 15 = 2.47. The ads are profitable: each order keeps $22 after ad spend.
Frequently asked questions
What is the difference between PROAS and ROAS?
ROAS divides the revenue from ads by what the ads cost. PROAS divides the profit on those orders, after product, shipping, fee and fixed costs, by what the ads cost. A ROAS of 3 can make money for one store and lose it for another; a PROAS above 1 always means the ads made money.
What is a good PROAS?
Anything above 1 means your ads make a profit after all the costs you entered. How far above 1 to aim depends on how much profit you want from each order and how reliable your CPA figure is.
Why include fixed costs?
Salaries, rent, software and other fixed costs have to be paid from the profit on your orders. Spreading them over your orders shows whether each order, after its ads, really adds to profit. Leave them blank to see PROAS on the per-order costs only.
Where do I find my CPA?
Divide your ad spend by the number of orders it brought in over the same period. Ad platforms report it as cost per purchase, but they often claim more sales than your store receives, so dividing total ad spend by your new orders in Shopify gives a more cautious figure.
Should I include VAT?
VAT is collected for the government, so it is neither revenue nor cost. If your per-order amounts include VAT, choose the rate and the calculator removes it. Enter your CPA and fixed costs without VAT.
See the real ROAS of every campaign.
StoreHero tracks contribution margin and blended ROAS across Meta, Google and TikTok every day, so you see which campaigns make money.