Make your marketing
answer to the numbers.

Your marketing report should help you make a decision. I use CAC and MER to start that conversation—then I look at what your business keeps after the sale.

Growth should give you options.

Enter one consistent reporting period. See what you spend to acquire a customer, how revenue compares with total marketing cost, and what remains after variable costs and marketing. Every starting number below is an illustrative example.

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Follow the money before you increase the budget.

Your revenueAfter discounts and refunds−Variable costsWhat it takes to deliver−MarketingThe full marketing cost=Contribution leftStill needs to cover overhead

Revenue after discounts and refunds ($)For one period, excluding sales tax. Use revenue earned under your accounting method, which may differ from cash collected. Use the same basis each time—not ad-platform attributed sales.Total marketing cost ($)Media, agency, creative, and allocated marketing labor and software for that same period. Count each cost once.Sales and marketing costs to win new customers ($)Sales + marketing costs allocated to new customers, including sales labor. Exclude retention activity. This is a separate scope from total marketing.New paying customersFirst-time paying customers, not leads, orders or returning customers. Use one consistent definition.Contribution margin before marketing (%)Revenue less variable delivery costs, divided by revenue. Exclude costs already counted in marketing. This tool models margins from 0–100%.

Optional: compare with your own plan

Leave these blank if you have not set a target. These are your business limits, not industry benchmarks.

Contribution needed after marketing ($)For this period: the amount you want left for remaining costs plus your desired surplus. This is not a net-profit target.Maximum acquisition CAC ($)Your ceiling per new customer. Base it on observed customer contribution, remaining costs and an affordable payback period—not an assumed lifetime value.

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Illustrative example / one reporting period

What your revenue leaves behind

$25,000.00

Contribution after variable costs and total marketing. This is not net profit or cash flow.

Compared with your inputs

Colors describe the figures entered and your chosen targets. They do not grade your whole business or compare it with an industry average.

Contribution after marketing

Yellow · Set your contribution target

$25,000.00 is left, but the calculator does not know what your remaining costs require. Enter a target that covers those costs and your desired surplus.

Acquisition cost per new customer

Set your CAC ceiling

Choose the acquisition cost you can support from observed customer contribution and the time you can afford to wait for payback. An industry average cannot set that limit for you.

Marketing efficiency ratio · MER: 6.67×All revenue ÷ total marketing cost
Customer acquisition cost · CAC: $120.00Acquisition sales + marketing ÷ new customers
Marketing as a share of revenue: 15%Same revenue and cost period
Contribution break-even MER: 2.50×Covers variable costs + marketing only

Where this period’s revenue goes. Each bar uses the same dollar scale.

Variable delivery costs$60,000.00

Total marketing$15,000.00

Contribution left$25,000.00

At this margin, 2.50× MER covers variable costs and marketing. Your business still needs to cover overhead, any sales costs not already included, financing and taxes. A break-even ratio is not a growth target.

Use the ratio. Question the story.

01 / Your revenue mix

Returning customers change the picture.

MER includes revenue from new and existing customers. A strong repeat base can lift it even when new-customer acquisition gets more expensive. Review new-customer revenue, repeat purchase behavior and contribution alongside it.

02 / Your sales cycle

Match the spending to the outcome.

A lead generated this month may buy next month. Same-period CAC is a directional operating measure when there is a delay. For a longer sales cycle, follow the same lead cohort through its sales window before judging a channel.

03 / Your next decision

Ask what another dollar could earn.

Your average return does not tell you what the next dollar will produce. Before you scale, check contribution by offer, available capacity and the results of a controlled budget change. Your strongest-looking channel may already be near its limit.

Definitions, formulas and the limits of this calculator

MER: Revenue after discounts and refunds ÷ total marketing cost. This is a multiple: 5× means $5 of revenue for each $1 of marketing cost. Marketing as a share of revenue is the percentage version of the spending relationship; 5× MER equals a 20% marketing share. Definitions vary between businesses; this tool includes media, agency, creative, allocated marketing labor and software. A platform ROAS is a different measure with a different revenue and cost scope.
CAC: A dollar amount per new customer, not a percentage. Sales and marketing costs allocated to customer acquisition ÷ new paying customers. Include the appropriate labor and overhead allocation before calling it fully loaded. This cost pool can exceed marketing alone because sales costs are included.
Contribution after marketing: Revenue × premarketing contribution margin − total marketing cost. Variable delivery costs belong in the margin; costs included in marketing must not also be deducted there. Fixed overhead, additional sales costs, financing and taxes may still need to be paid.
Break-even MER: 1 ÷ premarketing contribution margin as a decimal. At 40%, this is 2.5×. It assumes a stable margin and covers only variable costs and marketing. A 0% margin has no finite break-even MER. If your premarketing contribution is negative, address the offer’s economics before using this model.
ROAS and ROI: ROAS is attributed revenue ÷ ad spend, normally shown as a multiple: 4× means $4 of attributed revenue per $1 of ad spend. ROI is a percentage: net gain attributable to an investment ÷ investment cost × 100. This calculator does not establish attribution or net investment gain, so it does not report ROI. A 4× ROAS is not a 400% profit or ROI.
Your targets: Choose a contribution target that leaves enough for costs excluded above and your desired surplus. Choose a CAC ceiling using observed contribution from new customers and an affordable payback period. Recheck both as customer mix, margin and cash requirements change. A green signal only means the entered result meets your entered limit.
Missing ratios: A zero denominator produces “Not available,” not a zero cost or an infinite return. No new customers means CAC cannot be calculated. No marketing spend means MER cannot be calculated.

Want to find the next operational issue? Follow your leads through the funnel or check your ecommerce order economics.