Log in with GoogleProfit per product
Profit per product is the revenue remaining for a product after subtracting the costs allocated to it.
By Berend Vrakking, founder of Product Metrics. Updated 15 October 2026.
Formula
Contribution after ads = net product revenue − product costs − variable order costs − attributed ad spend
State which costs are included. Contribution after advertising is not final accounting profit unless overheads and other relevant costs are also allocated.
Example
| Item | Value |
|---|---|
| Net revenue | €1,000.00 |
| Product costs | €500.00 |
| Variable order costs | €100.00 |
| Attributed advertising | €250.00 |
| Contribution after ads | €150.00 |
The product contributes €150.00 towards overheads and profit after the included costs. Illustrative data.
Put it into practice
- Calculate it: POAS calculatorApply the definition to your products.
- Read the guide: Break-even ROAS per productWork through the concept in more detail.
For one product, and for an account
Use the same reporting period and allocation rules across products. Shared shipping costs, returns and orders containing several products need an explicit allocation method; otherwise the comparison can favour one product unfairly.
Common mistake
Calling revenue minus purchase cost net profit. Payment fees, shipping subsidies, returns, advertising and overheads can materially change the amount left.
Questions
Is contribution after ads net profit?
Why calculate it per product?
Keep reading
- Walmart fee and profit calculatorCalculate contribution after referral fees and order costs.
- TikTok Shop fee and profit calculatorModel your referral rate, affiliate commission and advertising costs.
- Contribution marginThe contribution available before advertising.
- POASExpress contribution relative to advertising spend.