Email Marketing ROI Calculator
Calculate the profitability, break-even metrics, and conversion value of your email campaigns.
Please enter valid positive numbers for all fields.
Total Clicks Generated:
0
Total Conversions (Sales):
0
Cost Per Acquisition (CPA):
$0.00
Total Revenue Generated:
$0.00
Net Profit:
$0.00
Return on Investment (ROI):
0%
How to Calculate Email Marketing ROI
Return on Investment (ROI) is the definitive metric for measuring the efficiency of your email marketing campaigns. It tells you exactly how much revenue you generate for every dollar spent. Understanding your ROI helps in budget allocation, strategy refinement, and proving the value of the email channel to stakeholders.
The ROI Formula
The basic formula used in this calculator is:
ROI = ((Total Revenue – Total Campaign Cost) / Total Campaign Cost) * 100
However, to arrive at accurate revenue figures, we must look at the funnel metrics:
- Click-Through Rate (CTR): The percentage of recipients who clicked a link in your email. This indicates engagement.
- Conversion Rate: The percentage of those clickers who completed a purchase. This indicates offer relevance and landing page effectiveness.
- Average Order Value (AOV): The average amount spent per transaction.
Interpreting Your Results
Positive ROI: A result greater than 0% means your campaign is profitable. For example, an ROI of 400% means you earned $4 for every $1 spent.
Negative ROI: A result below 0% indicates a loss. This suggests issues with either high costs, low engagement (CTR), or pricing strategies (AOV).
Cost Per Acquisition (CPA): This metric tells you how much it costs to acquire a single paying customer through this specific campaign. If your CPA is higher than your customer's Lifetime Value (LTV), the campaign may be unsustainable long-term.