# MER calculator

> Free MER calculator. Divide total revenue by all marketing costs, compare it with break-even, and see how much revenue your ad platform claims twice.

Free, no sign-up, runs in the browser: https://analify-ai.scalyax.ai/tools/mer-calculator

MER (marketing efficiency ratio) checks all your marketing against all your revenue, so no platform can take credit for sales it didn't make.

## What it calculates

Each ad platform reports the revenue it thinks it caused, and their totals often add up to more than you sold. MER ignores attribution: total revenue divided by total marketing cost, including email, agency and tools. The calculator also estimates how much one platform over-claims compared with its share of spend.

## Formula

```
Marketing = Paid ads + email + agency + tools
MER = Total revenue ÷ Marketing
Break-even MER = 1 ÷ margin
Profit after marketing = Revenue × margin − Marketing
Over-claim = Platform revenue − Total revenue × (platform spend ÷ paid spend)
```

## Worked example

Inputs:
- Total revenue: USD 80,000
- Paid ads: USD 18,000
- Email and SMS: USD 800
- Agency fees: USD 2,500
- Marketing tools: USD 600
- Margin before marketing: 45%
- Meta spend: USD 12,000
- Meta-reported revenue: USD 45,000

Results:
- MER: 3.65×
- Break-even MER: 2.22×
- Blended ROAS (paid only): 4.44×
- Marketing as share of revenue: 27.4%
- Profit after marketing: USD 14,100
- Meta-reported ROAS: 3.75×
- Revenue Meta claims beyond its share: -USD 8,333

## What changes the result

Paid ads at five values; every other input as in the example.

| Paid ads | MER | Profit after marketing |
| --- | --- | --- |
| USD 9,000 | 6.2× | USD 23,100 |
| USD 13,500 | 4.6× | USD 18,600 |
| USD 18,000 (example) | 3.65× | USD 14,100 |
| USD 22,500 | 3.03× | USD 9,600 |
| USD 27,000 | 2.59× | USD 5,100 |

## How to read the result

If MER is below break-even MER, the business loses money on marketing as a whole, whatever each platform reports.
A large over-claim means the platform's ROAS is too generous to plan budgets with. Trust MER for total spend decisions.

## Questions

**What is MER in ecommerce?**
Marketing efficiency ratio: total revenue divided by total marketing cost. It is also called blended ROAS when only ad spend is counted.

**What is the difference between MER and ROAS?**
ROAS uses the revenue one platform attributes to itself. MER uses all revenue and all marketing cost, so it cannot be inflated by attribution.

**What is a good MER?**
One above 1 ÷ your margin before marketing. Below that, marketing costs more than the gross profit it brings.

**Do you store what I enter?**
No. The calculation runs in your browser and nothing is sent to Analify.

## Use your real numbers

Analify reads spend from Meta, TikTok and Google, total sales from Shopify and other costs from Finance, and shows blended ROAS and Blended Profit across every channel. Analify reads 8 of these 8 inputs live. Try the calculator: https://analify-ai.scalyax.ai/tools/mer-calculator

More free ecommerce calculators: https://analify-ai.scalyax.ai/tools