Measure the profitability of your email campaigns instantly.
Total Clicks:0
Total Conversions:0
Gross Revenue:$0.00
Net Profit:$0.00
Return on Investment (ROI):0%
How to Calculate Email Marketing ROI
Email marketing remains one of the most effective digital marketing channels, often cited as having an average ROI of $36 for every $1 spent. However, to truly understand if your campaigns are working, you need to look beyond vanity metrics like open rates and focus on the bottom line.
The Formula
The core formula for Email ROI is:
ROI = ((Total Revenue – Campaign Cost) / Campaign Cost) x 100
Key Metrics Explained
Campaign Cost: Includes software fees (ESP), design costs, copywriting fees, and any paid list acquisition.
Click-Through Rate (CTR): The percentage of email recipients who clicked on one or more links in your email.
Conversion Rate: The percentage of people who clicked a link and then completed a desired action (like a purchase).
Average Order Value (AOV): The average dollar amount spent each time a customer completes a transaction.
Example Scenario:
Imagine you spend $200 on a campaign. You send 5,000 emails.
With a 20% open rate (1,000 opens) and a 3% CTR, you get 30 clicks.
If 10% of those clicks convert (3 sales) at an AOV of $150, your revenue is $450.
Your profit is $250, resulting in an ROI of 125%.
Strategies to Improve Your Email ROI
If your ROI is lower than expected, consider these three optimizations:
Segmentation: Sending targeted messages to specific groups (e.g., past buyers vs. leads) significantly increases conversion rates compared to "blast" emails.
A/B Testing: Test subject lines to improve open rates and call-to-action (CTA) buttons to improve click rates.
Landing Page Optimization: If your CTR is high but conversions are low, the problem likely lies on your website, not the email itself.
function calculateEmailROI() {
var cost = parseFloat(document.getElementById("campaignCost").value);
var sent = parseFloat(document.getElementById("emailsSent").value);
var opens = parseFloat(document.getElementById("openRate").value);
var clicks = parseFloat(document.getElementById("clickRate").value);
var convs = parseFloat(document.getElementById("convRate").value);
var aov = parseFloat(document.getElementById("avgOrderValue").value);
// Validation
if (isNaN(cost) || isNaN(sent) || isNaN(opens) || isNaN(clicks) || isNaN(convs) || isNaN(aov)) {
alert("Please enter valid numeric values in all fields.");
return;
}
// Calculations
var totalOpens = sent * (opens / 100);
var totalClicks = totalOpens * (clicks / 100);
var totalConversions = totalClicks * (convs / 100);
var grossRevenue = totalConversions * aov;
var netProfit = grossRevenue – cost;
var roi = 0;
if (cost > 0) {
roi = (netProfit / cost) * 100;
} else if (grossRevenue > 0) {
roi = 100; // Edge case for zero cost
}
// Display Results
document.getElementById("roi-result-area").style.display = "block";
document.getElementById("resClicks").innerHTML = Math.round(totalClicks).toLocaleString();
document.getElementById("resConvs").innerHTML = totalConversions.toFixed(2);
document.getElementById("resRev").innerHTML = "$" + grossRevenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById("resProfit").innerHTML = "$" + netProfit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
var roiElement = document.getElementById("resROI");
roiElement.innerHTML = roi.toLocaleString(undefined, {maximumFractionDigits: 1}) + "%";
if (roi < 0) {
roiElement.style.color = "#d9534f";
} else {
roiElement.style.color = "#28a745";
}
// Smooth scroll to result
document.getElementById("roi-result-area").scrollIntoView({ behavior: 'smooth', block: 'nearest' });
}