Email Marketing ROI Calculator
Measure the profitability of your email campaigns instantly.
Understanding 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 exactly how much revenue your campaigns generate relative to the costs involved, including software subscriptions, copywriting, and design assets.
How the Calculation Works
Our calculator uses the standard ROI formula tailored for marketing professionals:
- Total Revenue: Calculated by multiplying the number of conversions (sales) by your Average Order Value (AOV).
- Net Profit: Total Revenue minus the Total Campaign Cost.
- ROI Percentage: (Net Profit / Total Campaign Cost) x 100.
- CPA: The cost incurred to acquire a single customer (Total Cost / Conversions).
Example Scenario
Imagine you spend $200 on a targeted email blast (including the cost of your ESP and a freelance writer). If that email results in 10 sales with an average value of $50 each, your total revenue is $500. Your net profit is $300, resulting in a 150% ROI.
Tips to Improve Your Email ROI
To maximize your returns, focus on these three key areas:
- Segmentation: Sending relevant content to specific groups within your list increases conversion rates.
- A/B Testing: Test subject lines and Call-to-Action (CTA) buttons to find what resonates best with your audience.
- Automation: Set up abandoned cart or welcome sequences to generate revenue on autopilot without increasing labor costs.