Email Marketing ROI Calculator

How to Use the Email Marketing ROI Calculator

Email marketing is known for its high return on investment. This tool helps you quantify that return by calculating your campaign's profitability based on key performance metrics.

1. Total Email Campaign Cost ($): Enter all costs associated with the campaign (e.g., email software fees, content creation costs, freelance fees).
2. Average Order Value (AOV) ($): Enter the average dollar amount a customer spends when they make a purchase.
3. Total Emails Sent: The total number of unique emails delivered to your audience.
4. Click-Through Rate (CTR) (%): The percentage of email recipients who clicked on a link within your email.
5. Conversion Rate (%): The percentage of *those who clicked* who then completed a purchase.

Click "Calculate Email ROI" to see a detailed breakdown, including your total revenue, net profit, and final ROI percentage.

Understanding Your Email ROI Metrics

Total Clicks: The total number of clicks generated from your campaign.
Formula: Total Emails Sent * (CTR / 100)

Total Conversions (Sales): The number of sales attributed to the campaign.
Formula: Total Clicks * (Conversion Rate / 100)

Total Revenue: The total income generated from those sales.
Formula: Total Conversions * Average Order Value

Net Profit: Your total revenue minus your total campaign costs.
Formula: Total Revenue - Total Email Campaign Cost

Email Marketing ROI: This is the final percentage that shows your campaign's profitability.
Formula: (Net Profit / Total Email Campaign Cost) * 100

Why is Tracking Email ROI Important?

Tracking your email marketing ROI is essential for optimizing your strategy and proving its value. A high ROI (often cited as high as 36:1 or 3600%) confirms your strategy is working. A low ROI signals that you need to make changes.

• Identify Top Performers: See which types of emails (newsletters, promotions, automated sequences) generate the most revenue.
• Justify Your Budget: Show clear, hard numbers on how email marketing contributes to the bottom line.
• Optimize Your Funnel: A low CTR might mean your subject lines need work. A low conversion rate might mean your landing page needs optimization. This data tells you where to focus.