Email marketing remains one of the most effective digital channels for driving revenue. To understand your Return on Investment (ROI), you need to track how much you spend versus how much your campaigns generate in sales. Our calculator simplifies this process by analyzing your funnel from the moment the email hits the inbox to the final checkout.
Understanding the Metrics
Total Recipients: The number of people on your list for a specific campaign.
Open Rate: The percentage of recipients who actually opened your email.
Click-Through Rate (CTR): The percentage of people who opened the email and clicked a link.
Conversion Rate: Of the people who clicked, what percentage actually made a purchase?
Campaign Cost: Include software fees, copywriting costs, and design expenses.
The Formula Behind the Math
We calculate the ROI using these steps:
Conversions: (Recipients × Open Rate × CTR × Conversion Rate)
Revenue: (Conversions × Average Order Value)
ROI: ((Revenue – Cost) / Cost) × 100
Example Calculation
If you send an email to 10,000 people with a 20% open rate, 5% CTR, and a 2% conversion rate, you will generate 20 sales. If your Average Order Value is $100, your total revenue is $2,000. If the campaign cost $500, your net profit is $1,500, resulting in a 300% ROI.
function calculateEmailROI() {
var recipients = parseFloat(document.getElementById('totalRecipients').value);
var openRate = parseFloat(document.getElementById('openRate').value) / 100;
var ctr = parseFloat(document.getElementById('ctr').value) / 100;
var convRate = parseFloat(document.getElementById('convRate').value) / 100;
var aov = parseFloat(document.getElementById('avgOrderValue').value);
var cost = parseFloat(document.getElementById('campaignCost').value);
if (isNaN(recipients) || isNaN(openRate) || isNaN(ctr) || isNaN(convRate) || isNaN(aov) || isNaN(cost)) {
alert("Please enter valid numbers in all fields.");
return;
}
// Calculation Logic
var opens = recipients * openRate;
var clicks = opens * ctr;
var conversions = clicks * convRate;
var revenue = conversions * aov;
var profit = revenue – cost;
var roi = (cost > 0) ? ((profit / cost) * 100) : 0;
// Update UI
document.getElementById('resConversions').innerText = conversions.toFixed(2);
document.getElementById('resRevenue').innerText = '$' + revenue.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resProfit').innerText = '$' + profit.toLocaleString(undefined, {minimumFractionDigits: 2, maximumFractionDigits: 2});
document.getElementById('resROI').innerText = roi.toFixed(2) + '%';
document.getElementById('roiResultBox').style.display = 'block';
}