Email Marketing ROI Calculator
Analyze the profitability of your email campaigns instantly.
Understanding Email Marketing ROI
Return on Investment (ROI) is the single most critical metric for evaluating the success of your email marketing campaigns. It measures the profitability of your efforts by comparing the revenue generated from your emails against the cost of creating and sending them.
For every $1 spent on email marketing, the average return is often cited as being between $36 and $40, making it one of the highest-performing digital channels available to marketers today. However, achieving these results requires careful optimization of your click-through rates (CTR) and conversion metrics.
How This Calculator Works
This tool uses a standard funnel logic to project your earnings:
- Clicks: Calculated by applying your CTR to your total audience size. This represents the number of people visiting your landing page.
- Conversions: We apply your landing page conversion rate to the number of clicks to estimate total sales generated.
- Revenue: Multiply the number of conversions by your Average Order Value (AOV).
- ROI Formula:
((Revenue - Cost) / Cost) * 100. A positive percentage indicates profit, while a negative percentage indicates a loss.
Key Metrics Defined
Click-Through Rate (CTR): The percentage of subscribers who clicked on a link inside your email. A healthy CTR typically ranges from 2% to 5% depending on your industry.
Conversion Rate: The percentage of visitors who completed a purchase after clicking through. Optimizing your landing page is the best way to improve this number.
Average Order Value (AOV): The average dollar amount spent each time a customer places an order. Increasing AOV through bundles or upsells directly impacts your bottom line without needing more traffic.
Improving Your Email ROI
If your calculation shows a low or negative ROI, consider segmenting your audience to deliver more relevant content, A/B testing your subject lines to improve open rates, or refining your landing page design to boost conversion rates.