MER Calculator

MER (marketing efficiency ratio) is total revenue divided by total marketing spend across all channels — sometimes called blended ROAS.

$
$
Marketing efficiency ratio4.50x
Marketing as % of revenue22.2%
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What is MER?

Platform ROAS can over-count because each platform claims credit. MER uses your real total revenue and total spend, so it shows whether marketing as a whole is working.

How to use the MER calculator (formula)

Marketing efficiency ratio = Total revenue (all channels) ÷ Total marketing spend Marketing as % of revenue = Total marketing spend ÷ Total revenue (all channels) × 100

What each field means

  • Total revenue (all channels) — Total store revenue (all channels).
  • Total marketing spend — Total marketing spend (all channels).

Worked example

Using these numbers: total revenue (all channels) $90,000, total marketing spend $20,000.

The marketing efficiency ratio is 4.50x.

  • Marketing as % of revenue: 22.2%

What is a good MER?

Many ecommerce brands aim for an MER of 3–5. The right target depends on gross margin and fixed costs.

Tips to improve your result

  • Track MER weekly alongside platform ROAS.
  • Use MER for budget decisions, ROAS for campaign decisions.
  • A stable MER while scaling means healthy growth.
  • Include agency and creative costs for a strict MER.

Frequently asked questions

What is the MER formula?

MER = total revenue ÷ total marketing spend.

MER vs ROAS?

ROAS is per platform or campaign; MER is the whole business.

Why use MER?

Tracking changes made platform attribution less reliable; MER uses real totals.

How do I improve MER?

Improve retention, conversion rate and creative, and cut channels that do not add revenue.

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