Marketing & Advertising
Social Advertising Funnel Calculator
The model makes the click-to-landing loss and order refund gate explicit. It does not use a generic two-rate marketing funnel or apply an unexplained approval percentage. Each input corresponds to a platform, analytics, commerce, or finance measure that can be checked independently.
Paid link clicks-
Landing-page views-
Orders before refunds-
Orders retained after refunds-
Retained new customers-
Revenue after refunds-
Gross profit on retained revenue-
Gross profit less ad spend-
Spend per paid link click-
Spend per retained new customer-
Retained revenue divided by ad spend-
Retained orders required for gross-profit break-even-
Landing purchase rate required for break-even-
Decision view
Paid-social retained-order funnel
Paid-social retained-order funnelImpressions pass through link clicks, landing-page delivery, purchases, refunds, and new-customer share before spend economics are evaluated.
Exact scenario comparisonLanding-page purchase rate (%) changes while all other entered assumptions remain constant.
| Landing-page purchase rate (%) | Paid link clicks | Landing-page views | Orders before refunds | Orders retained after refunds | Retained new customers | Revenue after refunds | Gross profit on retained revenue | Gross profit less ad spend | Spend per paid link click | Spend per retained new customer | Retained revenue divided by ad spend | Retained orders required for gross-profit break-even | Landing purchase rate required for break-even |
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How to use Social Advertising Funnel Calculator
- Enter paid impressions and link CTR from the same platform reporting window.
- Enter analytics landing-page delivery, commerce purchase rate, and refund or cancellation rate.
- Add order value, gross margin, new-customer share, and spend, then compare the live funnel with break-even.
Calculator guide
Understanding Social Advertising Funnel Calculator
Trace paid-social spend through impressions, link clicks, actual landing-page views, purchases, refunds, and new-customer share. The economics use retained orders rather than platform-reported conversions, producing retained revenue, gross profit, CAC, ROAS, contribution, and a break-even purchase rate.
Detailed calculation process
Carry paid-social traffic to retained-order contribution
The default spends $50,000 on 2,000,000 impressions, uses 1.2% link CTR, 82% landing delivery, 3.4% purchase rate, 6% refunds, $95 AOV, and 58% gross margin.
General formula: Clicks = I x CTR/100LPV = Clicks x L/100Orders_gross = LPV x CVR/100Orders_ret = Orders_gross(1 - r/100)Customers_new = Orders_ret n/100Revenue_ret = Orders_ret AOVGP = Revenue_ret g/100Contribution = GP - SpendOrders_BE = ceil(Spend/(AOV g/100)) Every funnel gate applies to the output of the previous gate. Refunds reduce orders before revenue, while new-customer share affects CAC but not total retained revenue.
What each symbol means
Worked substitution with the default inputs
The default retains about 629 orders and 553.5 new customers, but loses $15,343.60 after spend; break-even requires 908 retained orders or a 4.91% landing purchase rate.
Paid funnel
Diagnose the stage that actually limits paid social
The funnel keeps delivery, purchase, and refund behavior separate.
Worked situations
Practical examples
- Two million impressions at 1.2% link CTR create 24,000 link clicks.
- After 82% landing delivery, 3.4% purchase rate, and 6% refunds, the default retains 628.9728 orders.
Better inputs
Useful tips
- Use consistent platform definitions for impressions, clicks, conversions, and attribution window.
- Estimate approval, refund, and fraud loss before assigning value to reported conversions.
- Compare attributed and incremental revenue with a holdout or lift estimate before scaling spend.
Before relying on the result
Limitations and common mistakes
- View-through conversions, repeat purchases, cohort LTV, creative frequency, and cross-device identity are excluded.
- The model assumes one average order value, refund rate, and gross margin across all retained orders.
- New-customer CAC uses the entered share rather than customer-level identity records.
Reference
Key terms
- Landing-page view rate
- Share of paid link clicks that successfully load and record the destination page.
- Retained order
- A gross order remaining after expected refund and cancellation loss.
- Retained ROAS
- Revenue from retained orders divided by paid social spend.
Important note
Do not scale from attributed ROAS alone; use retained gross profit and an incrementality check.
Frequently asked questions
Why is ROAS above 1 while contribution is negative?
Revenue exceeds spend, but only 58% of retained revenue is gross profit available to pay for advertising.
Why can orders be fractional?
Rates create an expected-value forecast; actual campaign counts are whole events.
Does new-customer share change total revenue?
No. It changes the CAC denominator, not the value of all retained orders.
Is the result incremental?
No. It is attributed funnel economics unless validated with a lift design.