Email Marketing ROI Calculator
Total Clicks: 0
Total Conversions: 0
Total Revenue: $0.00
Net Profit: $0.00
Return on Investment (ROI): 0%
How to Measure Email Marketing Success
Email marketing remains one of the most effective digital channels, often boasting an average ROI of $36 for every $1 spent. However, to understand if your specific campaigns are profitable, you must calculate your Return on Investment (ROI) using hard data.
The Email ROI Formula
This calculator uses the standard business ROI formula tailored for email campaign metrics:
- Total Clicks: Emails Sent × Open Rate × Click-Through Rate.
- Conversions: Total Clicks × Conversion Rate.
- Total Revenue: Conversions × Average Order Value (AOV).
- ROI: ((Total Revenue – Campaign Cost) / Campaign Cost) × 100.
Example Calculation
Imagine you spend $1,000 on an email tool and design. You send 50,000 emails. With a 20% open rate and a 3% click-through rate, you generate 300 clicks. If 5% of those clicks convert with an average order value of $100, you generate 15 sales totaling $1,500. Your net profit is $500, resulting in a 50% ROI.
Key Metrics to Improve Your ROI
To boost your results, focus on these three pillars:
- Deliverability: Ensure your emails actually reach the inbox. High bounce rates kill ROI instantly.
- Subject Lines: Your open rate is the first hurdle. A/B test subject lines to get more eyes on your content.
- Call to Action (CTA): Once an email is opened, the click-through rate depends on how compelling your offer is. Use clear, button-based CTAs.