Email Marketing ROI Calculator
Campaign Performance Summary
Total Conversions:
0
Total Revenue:
$0.00
Net Profit:
$0.00
Return on Investment:
0%
How to Calculate Email Marketing ROI
Email marketing remains one of the highest-yielding digital marketing channels. Understanding your Return on Investment (ROI) is crucial for justifying your marketing spend and optimizing your campaign strategy. This calculator helps you determine exactly how much profit your email sequences are generating compared to their cost.
The ROI Formula for Email Marketing
The standard formula used in this calculator is:
ROI = [(Revenue – Cost) / Cost] x 100
Key Metrics Explained
- Campaign Cost: Include everything from software subscriptions (like Mailchimp or Klaviyo), copywriting fees, design costs, and the hourly rate of the person managing the blast.
- Click-Through Rate (CTR): The percentage of recipients who clicked at least one link in your email. Average industry benchmarks range from 2% to 5%.
- Conversion Rate: The percentage of people who clicked through and completed a purchase. If you had 100 clicks and 2 sales, your conversion rate is 2%.
- Average Order Value (AOV): The average amount a customer spends when they buy from your email link.
Example ROI Calculation
Imagine you run a campaign with the following data:
- Total Sent: 50,000 subscribers
- CTR: 3% (1,500 clicks)
- Conversion Rate: 2% (30 sales)
- AOV: $100
- Total Cost: $500
In this scenario, your Total Revenue would be $3,000 (30 sales x $100). Subtracting the $500 cost gives you a Net Profit of $2,500. Using the formula, your ROI would be 500%.
3 Tips to Boost Your Email ROI
- Segment Your List: Sending personalized content to specific groups (e.g., past buyers vs. new leads) can increase conversion rates by up to 760%.
- A/B Test Subject Lines: Higher open rates lead to more clicks and, ultimately, higher ROI. Small changes in wording can lead to significant jumps in engagement.
- Optimize for Mobile: Over 50% of emails are opened on mobile devices. If your "Buy Now" button is hard to click on a phone, your conversion rate—and ROI—will suffer.