How the math works

One cohort, end-to-end

ROASMath follows a single paid-traffic cohort from ad impression through the third follow-up email. Buyers exit the sequence, so the same person is never counted twice.

  1. Ad budget → clicks (÷ CPC) → impressions (÷ CTR).
  2. Clicks → leads (opt-in rate) — Lead Funnel only.
  3. Immediate one-time offer, with optional order bump.
  4. Email 1: recipients → opens → clicks → purchases.
  5. Email 2 to remaining non-buyers, same denominators.
  6. Email 3 to the last remaining non-buyers.

Email denominators

Each email stage uses the previous stage: opens are % of recipients, clicks are % of openers, and purchases are % of clickers. Open rate now drives revenue — a higher open rate produces more clicks and more buyers.

Definitions

CTR (click-through rate)
Clicks divided by impressions. The share of people who saw the ad and clicked.
CPC (cost per click)
Ad spend divided by clicks. What you pay each time someone clicks the ad.
CPM (cost per mille)
Ad spend divided by impressions, times 1,000. What you pay per thousand impressions.
CPL (cost per lead)
Ad spend divided by leads. What each opt-in costs (Lead Funnel only).
CPA (cost per acquisition)
Ad spend divided by total buyers across immediate and email stages.
AOV (average order value)
Total revenue divided by total buyers, including bump revenue.
ROAS
Total revenue divided by ad spend. 1.00× means revenue equals ad spend before non-ad costs.
Open rate (email)
Percent of email recipients who open. Opens then drive clicks and purchases downstream.
Click rate (email)
Percent of email OPENERS who click. Not percent of recipients.
Post-click purchase rate
Percent of email CLICKERS who purchase.
Revenue per click
Total revenue divided by clicks — the average revenue each click produces.
Maximum break-even CPC (before non-ad costs)
The highest CPC at which forecast revenue still covers ad spend. Equals revenue per click under this fixed-cohort model.
Webinar registration rate
Share of ad clicks that register for the webinar (clicks → registrations).
Show-up rate
Share of registrants who attend the live or replay webinar.
Stick-to-CTA rate
Share of attendees still present when the offer or call CTA is made.
CTA click rate (Direct Purchase)
Share of viewers reaching the CTA who click through to checkout.
Purchase rate (Direct Purchase)
Share of CTA clickers who complete the offer purchase.
Application rate (Call path)
Share of viewers reaching the CTA who submit an application.
Call-booking rate
Share of applications that schedule a call.
Call show-up rate
Share of scheduled calls attended live.
Close rate
Share of call attendees who become closed buyers at the offer price.
Cost per booked call
Ad spend divided by total scheduled calls (immediate + email-attributed).
Post-click application rate (email)
On the call path, share of email clickers who submit an application. Applications then flow through booking, call show, and close.

What V1 does not model

  • Taxes, refunds, COGS, fulfillment cost, merchant fees.
  • Recurring subscriptions, LTV, cash-flow timing.
  • Landing-page load loss and any branching beyond three follow-ups.
  • Live ad-platform or email-service integrations.