Email Marketing ROI Calculator

Calculate email marketing ROI from tool cost, campaign cost, subscribers, open rate, conversion rate, and average order value. Links: ROI calculator, Marketing ROI, LTV.

Email ROI Formula

Email ROI = [(Revenue from Email − Total Cost) / Total Cost] × 100

Total cost = Email tool cost + Campaign cost. Revenue = Subscribers × Open Rate × Conversion Rate × AOV. Use UTM parameters and closed-loop attribution where possible. See gross margin and ROI formula for core concepts.

Attribution Limits

Email attribution is imperfect. Last-click overcredits email when other touches (paid, organic) contributed. Multi-touch or incrementality tests improve accuracy. Many buyers open multiple emails or click from a later touch; strict last-click may undercount. Use consistent methodology for trend analysis. See Marketing ROI and ROI limitations.

Retention Effect

Email drives both acquisition and retention. Welcome and lifecycle campaigns affect LTV and churn. A one-off campaign ROI understates long-term value if it reactivates lapsed customers or increases repeat purchase. Model LTV impact separately when possible.

LTV Relation

Subscriber value = Revenue / Subscribers. It approximates contribution per subscriber for that campaign. For full LTV, include all emails and touchpoints over the relationship. Email ROI per campaign is a snapshot; LTV captures lifetime value. Compare to CAC for list acquisition ROI.

Cost Components

Include: ESP fees, design/copy, deliverability tools, internal labor. Excluding costs inflates ROI. See ROAS calculator and Lead Generation ROI for other channel tools.

Benchmarks

Industry reports cite median email ROI of 36:1 to 42:1. Varies by list quality, product, and attribution. Transactional and triggered often outperform broadcast. Compare to your baseline and paid channels.