Calculating Interest Rate on Car Loan

Measure the financial effectiveness of your email campaigns instantly.

Understanding Email Marketing ROI

Email marketing remains one of the most profitable digital marketing channels, often delivering an average return of $36 for every $1 spent. However, calculating your specific Return on Investment (ROI) is crucial for justifying your marketing budget and optimizing your strategy.

The Formula for Email ROI

The basic formula used in this calculator is:

ROI = ((Total Revenue – Total Campaign Cost) / Total Campaign Cost) x 100

Key Metrics Explained

• Delivery Rate: The percentage of emails that successfully reached the recipient's mail server without bouncing.
• Open Rate: The percentage of delivered emails that were opened by recipients.
• Click-Through Rate (CTR): The percentage of recipients who clicked on one or more links contained in an email.
• Conversion Rate: The percentage of people who clicked through and completed a desired action (like making a purchase).
• Average Order Value (AOV): The average dollar amount spent each time a customer completes a transaction.

Example Calculation

Imagine you send a campaign to 10,000 subscribers. Your delivery rate is 99%, and your open rate is 20% (2,000 opens). With a 2% CTR, you get 40 clicks. If your conversion rate is 5%, you land 2 sales. If your AOV is $100, your revenue is $200. If the campaign cost you $50 in software and design time, your ROI would be 300%.

How to Improve Your ROI

If your calculator results are lower than expected, consider these three optimizations:

1. A/B Test Subject Lines: Improving your open rate naturally increases the number of people who can eventually convert.
2. Segment Your List: Sending highly relevant content to smaller groups typically yields higher conversion rates than "blast" emails.
3. Optimize Landing Pages: A high CTR is useless if the user leaves your site immediately. Ensure your landing page matches the email's promise.