Profit and margin
Steering Google Ads by profit: break-even, POAS, new customer value and discounts calculated properly.
6 articles
- Calculating break-even ROAS, with the costs that are often missing
The formula is simple, the inputs are not. How to account for VAT, returns, fees and shipping correctly, and what to decide based on the figure.
6 min read · 1 November 2026 - Discount promotions: what is left after ad spend
A 20% discount moves break-even ROAS and the extra volume you need a long way. With a calculation table, a full P&L and a check for pull-forward.
7 min read · 1 November 2026 - How much a new customer can cost: your cash sets a limit too
How to derive your maximum CAC from contribution margin and cash flow, with a worked example covering customer value, payback and capital tied up.
7 min read · 2 November 2026 - Managing Google Ads by profit instead of revenue
Four stages from profit reporting to sending contribution margin as the value: what data you need, what changes in campaigns and when you can stop.
10 min read · 2 November 2026 - POAS: when it beats ROAS and when it does not
POAS is ROAS times margin. With formula, worked example and a check: when switching really changes your bids and when ROAS is perfectly adequate.
7 min read · 2 November 2026 - Why ROAS 8 can be worse than ROAS 4
A high ROAS does not mean more profit. Worked example with marginal ROAS, the margin tipping point and a version for the managing director.
7 min read · 1 November 2026