Calculate the ROI of Your Email Marketing

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Pro Tip: remember to exclude bounced emails.

Enter the total number of subscribers your campaigns are sent to.

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While this includes a number of costs (e.g. cost of labor if an employee wrote the campaign), the most common expense is the monthly fee for your email service provider (ESP). To calculate the cost of a single campaign, divide the monthly fee by your total number of monthly campaigns.

Enter the total cost of the campaign.

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This is the percentage of subscribers that opened the email. To get an accurate reading, check the dashboard in your ESP.

Enter the campaign’s open rate.

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Like the open rate, the click rate is also available in the dashboard of your ESP.

Enter the percentage of subscribers that clicked-through in your email.

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This is the percentage of users that click through in the email and made a purchase. This number is available in Google Analytics (providing you have E-Commerce Tracking enabled).

Enter the email’s conversion rate.

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This is calculated by the total sales revenue made to date, divided by the total number of customers to date.

Enter the average spend per customer (ASC) (or average order value as it’s known in Google Analytics).

ROI

117.69%
With $237.28 in revenue, and
$128.28 in profit, for a total
of 2,479 opens
With a cost per contact of $0.011
the cost per email is $0.04
Leading to a cost per conversion of $48.69
The campaign will lead to 2 conversions, where you will
need 0.5 conversions to break even