Email Marketing ROI Calculator
Campaign Performance Summary
Estimated Conversions:
0
Gross Revenue:
$0.00
Net Profit:
$0.00
Cost Per Acquisition (CPA):
$0.00
Return on Investment (ROI):
0%
How to Calculate Your Email Marketing ROI
Return on Investment (ROI) is the most critical metric for any email marketing campaign. It tells you exactly how much revenue you are generating for every dollar spent on your email software, copywriters, and design tools.
To use this calculator effectively, you need to understand the basic flow of an email funnel:
- Total Emails Sent: The size of your segment or list for this specific blast.
- Open Rate: The percentage of recipients who opened the email. This tests your subject lines.
- Click-Through Rate (CTR): The percentage of openers who clicked a link. This tests your email body content and CTA.
- Conversion Rate: The percentage of clickers who completed a purchase. This tests your landing page.
The ROI Formula
The core formula used in our calculator is:
ROI = [(Revenue – Cost) / Cost] x 100
Example Calculation
If you send 10,000 emails with a 20% open rate (2,000 opens) and a 3% click rate, you get 60 clicks. If 5% of those clicks convert (3 sales) at an average order value of $100, your revenue is $300. If your campaign cost was $50, your ROI is 500%.
Tips to Improve Email ROI
If your ROI is lower than expected, focus on these three areas:
- Segmentation: Sending relevant content to specific groups increases conversion rates significantly compared to "batch and blast" methods.
- A/B Testing: Regularly test subject lines to increase open rates and button colors/copy to increase CTR.
- List Hygiene: Remove inactive subscribers to lower your costs and improve deliverability, which indirectly boosts ROI.