Tools / I Measurement
MER calculator: marketing efficiency ratio and total profit.
See why a falling MER can still mean more profit, then test what happens if you scale. It runs in your browser and nothing gets uploaded.
01
About this tool
What MER Analysis calculates.
MER almost always drops as you scale, because organic revenue stays flat while paid grows. That's expected. The question is whether total profit went up.
- The formula
- MER is total revenue over spend. ROAS is paid revenue over spend. Total profit is revenue times gross margin, minus spend.
- Expected input
- No CSV needed. Enter four numbers you already know and the spend you want to test. The link saves your scenario.
- Limits
- It holds organic revenue flat and assumes every added dollar converts at the same ROAS. For diminishing returns, use Marginal Efficiency.
02
Next
- 01Ad Scale ScatterPlot every ad on log spend by CPA to see what to scale, what to wait on and what to kill.Optimization
- 02Cash Flow ProjectionModel cohort payback and how much cash your growth rate needs.Measurement
- 03UGC Brief BuilderBuild a creator brief and copy it in a few minutes.Production
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