Email ROI Calculator

How to use this Email ROI calculator

To calculate your email ROI, first select whether you have already completed your campaign.

• If your answer is yes, enter the cost of tools and software used, labor and content creation costs, and the total revenue from your campaign.
• If your answer is no, enter the number of emails you want to send, your expected conversion rate, average revenue per conversion, expected cost of tools and software, and expected labor and content creation costs.

The calculator will instantly provide your email marketing ROI, providing insights into the profitability of your current or planned campaigns.

Email ROI formula

Email ROI (%) = ((Revenue from Email Campaign – Total Email Marketing Costs) / Total Email Marketing Costs) × 100

Here,

Total Email Marketing Cost = Cost of Tools and Software Used + Labor and Content Creation Costs

Note that these will be the expected values if you are yet to run your campaign.

In the case of a planned campaign, the revenue from the campaign will be estimated as follows:

Number of Conversions = (Expected Conversion rate/100) x Number of Emails To Be Sent

Expected Total Email Marketing Revenue = Number of Conversions x Average Revenue per Conversion

Understanding the Email ROI result

Your Email ROI result can give you valuable insights into the effectiveness of your email marketing campaigns. A good email ROI will depend on various factors such as the type of campaign, your industry, products, targets, etc. In general,

• A high ROI indicates that your email campaigns are generating substantial revenue for each dollar spent and that it is effective in converting your recipients.

• A low or negative ROI suggests that your campaigns may not deliver the expected results, and content, targeting, or strategy adjustments may be needed.

When to calculate Email ROI

Here are a few key situations where you should calculate your email ROI

• After completing an email campaign

• When planning a new campaign

• When analyzing the performance of different types of emails (e.g., newsletters vs. promotional emails)

• To determine the effectiveness of your email marketing efforts over time and make data-driven decisions

How to calculate Email ROI (with example)

Let’s assume you generated $30,000 in revenue from an email campaign, the cost of tools and software was $1000, and labor and content creation cost was $4000. You can calculate your email ROI as follows:

Email ROI (%) = ((Revenue from Email Campaign – Total Email Marketing Costs) / Total Email Marketing Costs) × 100

Total Email Marketing Cost = 4,000 + 1,000 = $5,000

Email ROI = ((30,000 – 5,000) / 5,000) × 100 = 500%

In this case, your Email ROI is 500%, meaning that for every dollar spent on email marketing, you earned $5 in return.

Alternatively, suppose you are planning a campaign to send 2,000 emails with an expected conversion rate of 5%, average revenue of $290 per conversion, $3000 spent on tools, and $4000 spent on content creation. In that case, your email ROI will be calculated as follows:

Number of Conversions = (5/100) x 2000 =100

Expected Total Email Marketing Revenue = 100 x 290 = $29,000

Email ROI (%) = ((Revenue from Email Campaign – Total Email Marketing Costs) / Total Email Marketing Costs) × 100

Total Email Marketing Cost = 3,000 + 4,000 = $7,000

Email ROI = ((29,000 – 7,000) / 7,000) × 100 = 314 %

In this scenario, you can expect a return of 314% of your investment from your email marketing campaign, i.e., you will earn $3.14 for every dollar you spend on the campaign.

How to improve your Email ROI

• Segment your email list to send more personalized and relevant content to different audience groups

• Optimize your subject lines and email content for higher open and click-through rates

• Use A/B testing to experiment with different email elements, such as design, copy, and CTAs, to improve performance

• Implement automated email campaigns for better engagement and conversion rates

• Ensure your emails are mobile-optimized to reach the widest possible audience

• Continuously monitor your email performance and adjust your strategy based on data-driven insights