Breakeven MER Calculator

Know exactly how efficiently your ad spend needs to convert into revenue to break even. This calculator helps you determine the minimum Marketing Efficiency Ratio (MER) required to cover all costs—so you can stop guessing and start scaling with confidence.

Total Revenue ($) (Total store sales less discounts, tax and refunds)
Total Ad Spend ($) (Total amount spent on marketing, including Meta, Google, TikTok, etc.)
Gross Profit Margin (%)
Operational Expenses ($)
Desired Net Profit (%)
Calculate
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Breakeven MER

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MER Goal

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Current MER

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Understanding Your MER Outputs

  • Breakeven MER → This is the minimum MER required to cover all costs (COGS, shipping, transaction fees, and fixed expenses). If your MER is below this number, your business is operating at a loss.
  • Current MER → This is your real-time MER based on your current ad spend and revenue. Comparing this to your breakeven MER helps you quickly assess whether your ad performance is profitable, breaking even, or losing money.
  • Target MER → This is the MER you need to achieve your desired net margin. If you want to balance profitability and growth, this number shows how efficiently your marketing should perform to hit your financial goals.
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