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Translate spend and revenue into ROAS, MER and CAC

Enter channel spend, revenue and new customers to see platform ROAS, blended MER and CAC. Use it when Meta and Google both claim the same orders.

Short answer

ROAS is channel revenue over channel spend. MER (blended ROAS) is all revenue over all paid spend. CAC is acquisition spend over new customers. When platform ROAS is high and MER is not, attribution is overlapping.

Calculator

Illustrative monthly figures. Replace with your Ads Manager and Shopify numbers.

Meta ROAS

4x

Google ROAS

4x

MER (blended)

3.2x

Platforms claimed ₹20,00,000 vs ₹16,00,000 store revenue

CAC

₹227

ROAS, MER, CAC

Channel ROAS = channel revenue / channel spend

MER = total revenue / total spend

CAC = total spend / new customers

  • — Platform-reported revenue can exceed total store revenue when two channels claim one order.
  • — Defaults are illustrative monthly figures for a growing Indian D2C brand.

Frequently asked questions

What MER should a D2C brand target?

There is no universal target. Read MER next to contribution after ads and RTO. A 3x MER with negative contribution is still a loss.

Why is my Meta ROAS higher than MER?

Usually because Meta and Google both take credit for the same purchase, and because ROAS ignores shipping, COD and RTO. MER is the reality check.

Keep reading

GlossaryMERMER is total revenue divided by total ad spend across every paid channel. It is the blended check on whether platform-reported ROAS is real.GlossaryROASROAS is revenue attributed to a channel or campaign divided by that channel's spend. Platform ROAS often double-counts the same order across Meta and Google.GuideMER vs ROAS: Which Metric Should D2C Brands Use?MER vs ROAS explained for D2C brands: formulas, examples in rupees, why platform ROAS overlaps, and how to use both to decide ad budgets.ProductMarQet BIBlended D2C analytics across store, ads, shipping and marketplaces.

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