MER analysis

Marketing efficiency ratio is total revenue divided by total ad spend. This works out the MER you need to break even from your contribution margin, compares it to what you're actually running, and tells you how much spend headroom is left.

Your numbers

€20,000
€60,000

Enter revenue above zero to get a result.

32%
18%

Payment fees, fulfilment, shipping you absorb, returns and refunds.

Costs reach 100% of revenue — there's no margin left to spend against.

Result

3.00x

actual MER, against a breakeven of 2.00x

0x 4.0x
Contribution margin
50%
Breakeven MER
2.00x
Actual MER
3.00x
Profit after spend
€10,000
Spend is covered with room left over.

What this means

updates as you move the sliders
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