Ad Profit Leak Score

What your result means

The leak score rates how profitable your Google Ads are, from 0 to 100:

The calculator also shows your monthly ad profit: the gross profit from ad-driven sales minus what you spent on the ads.

How the formula works

Ad profit = (Ad revenue × Gross margin) − Ad spend POAS = Ad profit ÷ Ad spend

Ad revenue

revenue Google Ads attributes to the ads

Gross margin

share of revenue left after product costs

POAS

profit on ad spend; 0 means break-even

The score maps POAS onto a 0–100 scale in straight lines between these points: a POAS of −1 scores 0, 0 scores 40, 1 scores 80, and 2 or more scores 100.

POAS of zero is the same as your break-even ROAS, which is 1 ÷ gross margin. The guide to ROAS and break-even ROAS explains the link.

Worked example

Worked exampleExample numbers

These match the calculator's default inputs.

Input	Value
Monthly Google Ads spend	$3,000
Revenue attributed to ads	$12,000
Gross margin	40%

1. Gross profit from ad sales = $12,000 × 40% = $4,800
2. Ad profit = $4,800 − $3,000 = $1,800
3. POAS = $1,800 ÷ $3,000 = 0.6
4. Leak score = 40 + (0.6 × 40) = 64, Leaking

For comparison, ROAS here is $12,000 ÷ $3,000 = 4.0, comfortably above the break-even ROAS of 1 ÷ 0.40 = 2.5.

How to plug an ad profit leak

• Bid on profit, not revenue. Feed Google your margins, or set ROAS targets per product group from each group's margin, so low-margin products don't get the same bids as high-margin ones.
• Cut products that can't break even. Any product whose ROAS sits below 1 ÷ its margin loses money on every ad-driven sale.
• Raise average order value. Bigger orders carry more gross profit per click. The AOV uplift calculator shows what that's worth.
• Check payback, not just the first order. If customers buy again, a low first-order profit can still pay off. The CAC payback calculator shows how many orders it takes.

Common mistakes when measuring ad profit

• Using store-wide margin for every campaign. If one campaign mostly sells low-margin products, its real leak is worse than the average suggests. Run the calculator per campaign or product group, with that group's margin.
• Counting revenue before refunds. Returned orders still cost you the ad spend. Use revenue after returns where you can.
• Mixing time periods. Use spend and revenue from the same month. Big promotions can make one month look unusually good or bad.
• Ignoring brand campaigns. Brand-keyword campaigns often look very profitable because those shoppers were already looking for you. Judge them separately from campaigns that find new customers.
• Stopping at the score. The score tells you whether there's a leak; the product-level margins and ROAS targets tell you where it is. The guide to ROAS shows how to set targets by product group.