Email Marketing ROI Calculator
Determine the profitability and performance metrics of your email campaigns instantly.
How to Measure Email Marketing Success
Email marketing remains one of the highest-performing channels for digital marketers, boasting an average ROI of $36 for every $1 spent. However, understanding the specific profitability of individual campaigns requires digging into the metrics beyond just "Sent" and "Delivered".
This Email Marketing ROI Calculator helps you visualize the funnel from your subscriber list down to your bottom line profit. By inputting your specific campaign variables, you can identify weak points in your strategy—whether it's subject lines (Open Rate), content engagement (Click Rate), or landing page performance (Conversion Rate).
Key Metrics Explained
- Audience Size: The total number of subscribers you successfully delivered the email to (excluding bounces).
- Open Rate: The percentage of recipients who opened your email. This is heavily influenced by your sender name and subject line.
- Click-to-Open Rate (CTOR): Unlike standard CTR (which measures clicks against total delivered), CTOR measures clicks against opens. It is the purest measure of your email content's effectiveness.
- Conversion Rate: The percentage of people who clicked through to your site and actually made a purchase or completed a goal.
- Average Order Value (AOV): The average dollar amount spent each time a customer places an order via your email link.
Calculating Email ROI
The formula for Return on Investment (ROI) in email marketing is relatively straightforward:
ROI = (Net Profit / Total Campaign Cost) x 100
Where Net Profit is your Total Revenue generated from the campaign minus the Total Campaign Cost (including software fees, design costs, and labor). A positive percentage indicates profit, while a negative percentage indicates a loss.
Example Scenario
Imagine you send a newsletter to 10,000 subscribers. You spend $200 on copywriting and platform fees.
- Your subject line works well, achieving a 25% Open Rate (2,500 opens).
- Your offer is compelling, resulting in a 10% Click Rate (250 clicks).
- Your landing page converts at 4% (10 sales).
- Your product costs $100 (AOV).
Result: You generate $1,000 in Revenue. Your Profit is $800 ($1,000 – $200). Your ROI is a massive 400%.