Supplement to Hour 8 · Paid Acquisition Math

ROAS Calculator & Ad Platform Cost Matrix

Two tools for paid acquisition planning. The calculator turns your margin and target into a break-even ROAS, a maximum CPA, and a forecast of what a given ad budget should return. The matrix compares the four platforms you'll actually consider so you can pick where to start before you spend a dollar.

Section 01 · Calculator

Break-even ROAS, max CPA, and budget forecast

Enter your unit economics on the left and your planned ad spend on the right. The calculator returns the ROAS you need just to break even, what a healthy target looks like with margin, the most you can pay to acquire a customer, and the revenue/orders/profit a given budget should produce at your target.

Unit Economics

Avg revenue per order
$
After COGS, shipping, fees
%
25% is standard
%
Ecom avg ~2.5%
%

Spend Plan

Across all platforms
$
See matrix below
$
For social/display reach
$
For payback math
%
Break-Even ROAS
Below this you lose money
Target ROAS
Break-even + buffer
Max CPA
Most you can pay per customer
Target CPA
Healthy CPA at target ROAS
Forecast Revenue
At target ROAS & budget
Forecast Orders
Revenue ÷ AOV
Clicks Bought
Budget ÷ CPC
Forecast Gross Profit
After COGS & ad spend
Enter your numbers and the calculator will tell you whether your plan is profitable, marginal, or upside-down before you spend a dollar.
Want it in Excel? The calculator above is the same math we'd build into a spreadsheet. Once we lock our hero product's AOV and margin, we'll port these formulas into ELJ_ROAS_Model.xlsx with one tab per platform and a blended view — tracked alongside actuals from Meta/TikTok/Google reporting. CoWork can refresh that sheet daily once it's built.
Section 02 · Cost Matrix

What each platform actually costs to test

Numbers below are 2026 ecommerce medians from Hawky.ai, InsightIQ, Foundry CRO, and Billo. They are starting reference points — your real numbers will diverge by category, creative quality, and audience. Use these to pick a starting platform mix and a sane minimum-viable test budget per channel.

Platform Typical CPM Typical CPC Median ROAS Min Useful Test Budget Best for
Meta (FB + IG)
Advantage+ Shopping
$8 – $20
IG Reels: $12 – $14
$0.90 – $2.50 2.5x – 3.0x
Retargeting: 3.6x
$2,500 / mo
~$80/day, 30 days
Visual lifestyle, beauty, apparel, home, gifting. Workhorse for ecom.
Google Ads
Search + Shopping + PMax
$2 – $8
Display only
$0.80 – $3.50
Branded: $0.20
3.5x – 4.5x
Shopping: 5.0x · PMax: 4.0x
$1,500 / mo
~$50/day, 30 days
High-intent search demand. Anything someone Googles by name or category.
TikTok Ads
Spark + Video Shopping
$6 – $10 $0.50 – $1.50 1.4x – 2.0x
Value-bid: 2.25x
$3,000 / mo
Needs creative volume
Impulse-buy under $75, Gen Z/millennial, demo-style UGC. Discovery channel.
Pinterest Ads
Product Pins, Idea Pins
$3 – $7 $0.30 – $1.50 2.0x – 3.5x $1,000 / mo Home, fashion, wedding, food, DIY. Long planning-cycle purchases.
Reddit Ads
Conversation Placements
$0.50 – $15
Wide variance
$0.40 – $1.20 2.3x – 4.7x
Post-2025 algo update
$1,500 / mo Niche, technical, hobbyist. Where community-native creative wins.
LinkedIn Ads
Sponsored Content, Lead Gen
$25 – $60
Highest of any channel
$5 – $12 1.5x – 2.5x
B2B pipeline view
$3,000 / mo B2B services, enterprise SaaS, recruiting. Skip for consumer products.
Email (Klaviyo)
Owned channel
36x – 42x
Owned audience
$0 – $150 / mo
Free to 250 contacts
Repeat purchase, abandoned cart, post-purchase upsell. Set up day one.

CPM = cost per 1,000 impressions. CPC = cost per click. ROAS = revenue ÷ ad spend. "Min useful test budget" is what it takes to get out of the platform's learning phase and generate enough conversions to evaluate; below this, you're just buying noise. Email ROAS looks absurd because it's an owned channel — you're not buying impressions, you're harvesting an audience you already paid to acquire.

Section 03 · Industry Reality Check

What "good" ROAS looks like by product category

A 4x ROAS is great for a 25% margin dropshipper but mediocre for a 70% margin skincare brand. Use these as sanity checks once you know your category — and remember the platform-level medians above blend across all categories, so your number can be very different.

2026 Median ROAS · By Category · Across Paid Channels
Beauty & Skincare
3.2x – 6.1x · High margins (60%+) and strong repeat behavior absorb low first-order ROAS.
Apparel & Fashion
2.8x – 3.5x · Returns and seasonality compress true ROAS. TikTok over-indexes here.
Home & Furniture
1.8x – 2.5x · High AOV but slow consideration. Pinterest + Google Shopping outperform.
Electronics & Tech
1.0x – 6.0x · Wide range. Branded search does ~6x; cold social often <2x.
Baby & Kids
3.5x – 4.5x · Motivated, safety-conscious buyers. Lifetime value extends well past the first order.
Health & Supplements
1.4x – 2.5x · Heavy ad-policy restrictions, expensive auctions. Subscription model is essential to make the math work.
Food, Beverage, CPG
1.5x – 5.0x · Retail media (Amazon, Instacart, Walmart Connect) often beats Meta for this category.
Jewelry & Accessories
3.0x – 5.0x · Visual-first; Meta + Pinterest are the workhorses.
Pet Supplies
1.8x – 2.8x · Crowded auctions. Repeat rate carries the unit economics.
Subscription Boxes
0.8x – 1.5x first month · Expected to lose money on acquisition; payback comes month 2–4 via LTV.
Section 04 · Where to Start

A starting allocation for a $5K monthly budget

Once we've picked a hero product and we're ready for our first ad dollar, this is where we'd start the test. The "70/30 split" between high-intent (Google) and demand-gen (Meta/TikTok) is the prevailing 2026 default for ecom — but the right mix depends on the category. Adjust upward toward Meta/TikTok if the product is visual and impulse-driven; upward toward Google if people Google the problem.

$2,500
50% · Demand Capture
Google Ads
Branded search + a focused Performance Max campaign on the hero product. Catches people who already want it.
$1,500
30% · Demand Creation
Meta Advantage+
One Advantage+ Shopping campaign, broad targeting, 4–6 creative variants from AdCreative.ai or Arcads. Refresh weekly.
$1,000
20% · Discovery / Test
TikTok or Pinterest
Pick one based on category — TikTok for impulse/under-$75, Pinterest for home/fashion/wedding/food. Don't run both at this budget.
CoWork Angle · ROAS Tracking & Alerting

The calculator above is the plan. The matrix below it is the map. The thing that actually keeps a paid acquisition operation healthy is checking the gap between plan and reality every single day — and that's pure recurring agentic work.

CoWork can do
  • Pull blended ROAS, CPA, CPC, CPM per platform daily into one dashboard
  • Compare actual ROAS to break-even and target from this calculator and flag deviations
  • Track CAC payback period using AOV, margin, and repeat rate
  • Alert when any platform's CPA exceeds Target CPA by >25% or its ROAS drops below Break-Even for 3+ days
  • Reconcile platform-reported revenue vs. Shopify-reported revenue (post-iOS attribution gap)
  • Draft a Friday "spend & reallocate" memo with proposed budget shifts for the team to approve
  • Maintain a running ELJ_ROAS_Model.xlsx with platform tabs and a blended view
CoWork can't do
  • Authenticate into ad platforms or actually move budget
  • Pause campaigns on its own — humans approve every reallocation
  • Diagnose why ROAS dropped (creative fatigue? landing page? seasonality?) — only flag that it did
  • Replace the weekly creative review where humans look at winning ads and decide what to make next
  • Decide when to abandon a platform vs. when to give it more runway

Human pattern: once a week, four of us look at CoWork's report for ~30 minutes, decide budget shifts, and approve them inside each platform. Daily monitoring is the agent's job.