Marketing Efficiency Ratio Calculator
Total revenue over total marketing spend — the blended return that survives attribution arguments — with the break-even ratio your gross margin implies.
Marketing efficiency ratio, sometimes called blended ROAS, divides all revenue by all marketing spend for the same period, so it needs no attribution model and cannot be flattered by one channel taking credit for another's customers.
How the marketing efficiency ratio calculator works
Marketing efficiency ratio, sometimes called blended ROAS, divides all revenue by all marketing spend for the same period, so it needs no attribution model and cannot be flattered by one channel taking credit for another's customers.
It is only useful against a break-even: revenue over spend must exceed one divided by the gross margin before marketing has paid for itself. The calculator gives the ratio, marketing as a share of revenue, that break-even, and the contribution left after marketing.
Formula: MER = revenue ÷ marketing spend; break-even MER = 1 ÷ gross margin; contribution = revenue × gross margin − spend
Worked examples
| Inputs | Marketing efficiency ratio | Note |
|---|---|---|
| Retail quarter | 6.25 × revenue per unit of spend | 6.25 against a 2.5 break-even |
| Software | 2 × revenue per unit of spend | 2.0 against 1.25 |
| Below break-even | 2 × revenue per unit of spend | 2.0 against 2.5 |
FAQFrequently asked questions
How is this different from ROAS?
ROAS is usually per channel or campaign and depends on which sales an attribution model credits to it. The marketing efficiency ratio uses all revenue and all spend, so channels cannot double-count the same customer and the figure cannot be gamed by attribution settings.
What is a good ratio?
Anything above the break-even your margin implies, with enough to spare for overheads and profit. A 40% gross margin needs a ratio above 2.5 just to break even; many retailers aim for 4 to 6 on blended spend. Software and services with high margins break even much lower.
Should spend include agency fees and salaries?
For a true blended figure, yes — everything spent to acquire and retain customers in the period. Media-only spend gives a higher ratio that flatters the programme; be consistent from one period to the next.
Why does the ratio fall as spend rises?
Because the cheapest customers are acquired first; each extra unit of spend reaches people less likely to buy. A falling ratio with growing revenue is normal, and the contribution row tells you whether the extra spend is still adding profit.
Where these figures come from
- Interactive Advertising Bureau — measurement guidelines — the impression and viewability definitions CPM depends on
- Advertising Standards Authority — the UK advertising regulator
Last checked: September 2026. These are standard industry definitions; where platforms disagree, the page says so.