Email Marketing ROI Calculator
Campaign Results
Total Clicks: 0
Total Conversions: 0
Gross Revenue: $0.00
Net Profit: $0.00
Return on Investment: 0%
Understanding Your Email Marketing ROI
Email marketing remains one of the most effective digital marketing channels, often delivering a higher return on investment (ROI) than social media or paid search. This calculator helps you determine the financial success of your email campaigns by analyzing the relationship between your costs and generated revenue.
How to Calculate Email ROI
To use the calculator, you need six key data points from your email service provider (ESP) and your sales records:
- Emails Sent: The total number of recipients in your list for a specific campaign.
- Campaign Cost: The total spend for that campaign, including software fees, copywriting, design, and list acquisition.
- Open Rate & CTR: Metrics that define how engaging your subject line and content were.
- Conversion Rate: The percentage of users who clicked through and completed a purchase.
- Average Order Value (AOV): The average dollar amount spent by a customer when they make a purchase through your email link.
The ROI Formula
The standard formula used in this calculator is:
Example Calculation
Let's say you send a campaign to 50,000 subscribers with a 20% open rate and a 2% click-through rate. This results in 200 clicks. If your conversion rate is 5%, you get 10 sales. With an Average Order Value of $100, your gross revenue is $1,000. If the campaign cost was $200, your net profit is $800, resulting in a 400% ROI.
Tips to Improve Your Email ROI
- Segment Your List: Sending targeted content to specific groups increases conversion rates significantly.
- A/B Test Subject Lines: Improving your open rate is the first step toward higher revenue.
- Optimize for Mobile: Over 50% of emails are opened on mobile devices; ensure your buttons are easy to click.
- Clean Your List: Removing inactive subscribers reduces costs and improves deliverability.