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MER calculator

Divide total revenue by total marketing spend to get one number for the whole store.

Inputs

MER

–

Marketing as % of revenue
–
aMER (new customers)
–

How it's calculated

MER = total revenue ÷ total marketing spend

aMER = new-customer revenue ÷ total marketing spend

Example

  • $200,000 in revenue from $50,000 of marketing.
  • MER is 200,000 ÷ 50,000 = 4, so marketing cost 25% of revenue.
  • $90,000 came from first orders, so aMER is 1.8.

More on this: Marketing efficiency ratio, Blended ROAS

Questions

  • How is MER different from ROAS?

    ROAS is usually measured per channel or campaign, using the revenue each one is credited with. MER uses all revenue and all marketing spend, so it does not depend on attribution.

  • Is MER the same as blended ROAS?

    Usually. Both divide total revenue by total spend. Some people count only ad spend in blended ROAS, so check what is included before comparing.

  • Why look at aMER too?

    Repeat customers lift MER even when your marketing did not reach them. aMER only counts first orders, so it shows whether new customers are getting more expensive.

Other calculators: ROAS calculator, Break-even ROAS calculator, Shopify profit calculator

Made by Soran, attribution for online stores.