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Email Marketing ROI Calculator

Results Summary

Total Conversions:

0

Total Revenue:

$0.00

Cost Per Acquisition:

$0.00

Return on Investment:

0%

function calculateEmailROI() { var cost = parseFloat(document.getElementById('campaignCost').value) || 0; var sent = parseFloat(document.getElementById('emailsSent').value) || 0; var openRate = (parseFloat(document.getElementById('openRate').value) || 0) / 100; var ctr = (parseFloat(document.getElementById('ctr').value) || 0) / 100; var convRate = (parseFloat(document.getElementById('convRate').value) || 0) / 100; var aov = parseFloat(document.getElementById('avgOrderValue').value) || 0; if (sent <= 0 || cost <= 0) { alert("Please enter valid numbers for Campaign Cost and Emails Sent."); return; } var opens = sent * openRate; var clicks = opens * ctr; var conversions = clicks * convRate; var revenue = conversions * aov; var profit = revenue – cost; var roi = (profit / cost) * 100; var cpa = cost / conversions; document.getElementById('resConversions').innerText = conversions.toFixed(0); document.getElementById('resRevenue').innerText = '$' + revenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}); document.getElementById('resCPA').innerText = isFinite(cpa) ? '$' + cpa.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2}) : '$0.00'; document.getElementById('resROI').innerText = roi.toLocaleString(undefined, {maximumFractionDigits: 1}) + '%'; if (roi < 0) { document.getElementById('resROI').style.color = '#e74c3c'; } else { document.getElementById('resROI').style.color = '#27ae60'; } document.getElementById('roiResults').style.display = 'block'; }

How to Calculate Email Marketing ROI

Return on Investment (ROI) is the most critical metric for determining the success of your email marketing efforts. It measures the net profit generated relative to the cost of the campaign. According to industry benchmarks, email marketing often yields an average return of $36 for every $1 spent.

The Email ROI Formula

To calculate ROI manually, use the following formula:

ROI = [(Total Revenue – Campaign Cost) / Campaign Cost] x 100

Key Metrics Defined

  • Open Rate: The percentage of recipients who opened your email. This reflects the effectiveness of your subject lines.
  • Click-Through Rate (CTR): The percentage of openers who clicked on a link. This measures how compelling your content and call-to-action (CTA) are.
  • Conversion Rate: The percentage of clickers who completed a desired action (like a purchase).
  • CPA (Cost Per Acquisition): How much it costs you to gain one single customer through this specific campaign.

Example Calculation

If you spend $500 on a campaign and send 10,000 emails, with a 20% open rate, you get 2,000 opens. With a 2% CTR, you get 40 clicks. If your conversion rate is 10% and your average order value is $100, you will generate 4 sales totaling $400. In this case, your ROI would be -20%, indicating a loss. Adjusting your conversion rate or CTR is necessary to turn a profit.

Tips to Increase Email ROI

  1. A/B Test Subject Lines: Higher open rates lead to more opportunities for clicks.
  2. Segment Your List: Sending relevant content to specific groups typically doubles CTR.
  3. Optimize Landing Pages: Ensure the page users land on matches the email's promise to boost conversion rates.
  4. Clean Your List: Remove inactive subscribers to lower costs and improve deliverability.

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