Email Marketing ROI Calculator
Calculate email marketing ROI, cost per subscriber, revenue per email, and compare email platform costs.
Campaign Costs
Email List
Performance Metrics
Revenue
Email Marketing Funnel
Total Revenue
$150.00
Related Calculators
About This Calculator
The Email Marketing ROI Calculator measures the true return on investment of your email campaigns by analyzing performance metrics against costs. Email marketing generates $36-$40 for every $1 spent on average—a 3,600-4,000% ROI that outperforms every other digital marketing channel (Omnisend). For e-commerce businesses, this ROI can reach $68 per $1 spent. With the average email open rate in 2025 at 43.46% and click-to-open rates at 6.81%, understanding your specific funnel metrics and costs is essential for optimization. This calculator helps you track campaign revenue, cost per acquisition, and overall ROI to maximize the most profitable channel in your marketing mix.
How to Use the Email Marketing ROI Calculator
- 1Enter your total campaign costs: email platform fees (monthly cost divided by number of campaigns), design costs, copywriting, and time invested.
- 2Input your email list size and expected deliverability rate (typically 95-98% for healthy lists).
- 3Enter your performance metrics: open rate (43% average), click-to-open rate (6.8% average), and landing page conversion rate.
- 4Add your average order value from email-driven purchases and your profit margin percentage.
- 5Review your funnel metrics: delivered → opened → clicked → converted → revenue.
- 6Analyze ROI percentage and compare against the $36-40 industry benchmark.
- 7Calculate cost per acquisition and revenue per email to identify optimization opportunities.
Email Marketing ROI Formula
Understanding how to calculate and benchmark email ROI:
The Core ROI Formula:
Email ROI = ((Revenue - Campaign Cost) / Campaign Cost) × 100
The Funnel Calculation:
Emails Sent × Deliverability Rate = Delivered
Delivered × Open Rate = Opens
Opens × Click-to-Open Rate = Clicks
Clicks × Conversion Rate = Conversions
Conversions × Average Order Value = Revenue
Example Calculation:
| Funnel Stage | Metric | Result |
|---|---|---|
| Emails Sent | 25,000 | 25,000 |
| Deliverability (97%) | ×0.97 | 24,250 |
| Open Rate (35%) | ×0.35 | 8,488 |
| Click-to-Open Rate (7%) | ×0.07 | 594 |
| Conversion Rate (4%) | ×0.04 | 24 conversions |
| Average Order Value | ×$85 | $2,040 revenue |
| Campaign Cost | — | $150 |
| ROI | — | 1,260% |
ROI Per Dollar: $2,040 / $150 = $13.60 per $1 spent
Benchmark Comparison:
- This example: $13.60 per $1
- Industry average: $36-40 per $1
- Top performers: $45-70 per $1
- Opportunity: Improve click rate or conversion rate
2025-2026 Email Performance Benchmarks
Current benchmarks help you understand where you stand and where to improve:
Open Rate Benchmarks (MailerLite):
| Performance Level | Open Rate | Notes |
|---|---|---|
| Excellent | 50%+ | Top decile |
| Strong | 45-50% | Above average |
| Average | 43.46% | 2025 benchmark |
| Below Average | 30-40% | Improvement needed |
| Poor | <30% | List health issues |
Click-to-Open Rate Benchmarks:
| Performance Level | CTOR | Notes |
|---|---|---|
| Excellent | 10%+ | Top performers |
| Strong | 7-10% | Above average |
| Average | 6.81% | 2025 benchmark |
| Below Average | 4-6% | Content optimization needed |
| Poor | <4% | Major issues |
Industry-Specific Benchmarks:
| Industry | Open Rate | Click Rate | Conversion Rate |
|---|---|---|---|
| E-commerce | 15-25% | 2-3% | 3-5% |
| B2B/SaaS | 20-30% | 3-4% | 2-4% |
| Media/Publishing | 22-28% | 4-6% | 5-8% |
| Finance | 18-22% | 2-3% | 3-4% |
| Nonprofits | 25-30% | 3-4% | 5-8% |
| Retail | 15-20% | 2-3% | 2-4% |
Email Type Performance:
| Email Type | Open Rate | Revenue/Email |
|---|---|---|
| Welcome Email | 68.6% | Highest LTV impact |
| Cart Abandonment | 45-50% | $5-15 per email |
| Browse Abandonment | 35-45% | $2-5 per email |
| Post-Purchase | 40-50% | 25% repeat rate |
| Promotional | 15-25% | $0.10-0.50 per email |
| Newsletter | 20-30% | Brand building |
True Campaign Cost Calculation
Most marketers underestimate email costs by 40-60%. Include everything:
Platform Cost Breakdown:
| Platform | Free Tier | 10K Subscribers | 50K Subscribers |
|---|---|---|---|
| Mailchimp | 500 contacts | $100/mo | $350/mo |
| Klaviyo | 250 contacts | $150/mo | $700/mo |
| ConvertKit | 1,000 contacts | $100/mo | $300/mo |
| Brevo | 300/day limit | $25/mo | $65/mo |
| ActiveCampaign | None | $99/mo | $259/mo |
Hidden Costs to Include:
| Cost Category | Typical Range | Calculation Method |
|---|---|---|
| Platform (per campaign) | $10-100 | Monthly fee ÷ campaigns |
| Design | $0-500 | Per email or template |
| Copywriting | $50-500 | Per email or hourly |
| Photography/Graphics | $0-200 | Per campaign |
| List Building | $1-5/sub | Acquisition costs |
| List Cleaning | $50-200/yr | Annual hygiene |
| Your Time | $25-150/hr | Hours × rate |
True Cost Example:
| Component | Cost |
|---|---|
| Klaviyo (25K list, 8 campaigns/mo) | $18.75/campaign |
| Design (template reuse) | $15.00 |
| Copywriting (in-house, 2 hrs) | $100.00 |
| Photography (stock) | $25.00 |
| Your Time (1 hr setup) | $50.00 |
| Total Cost | $208.75 |
Impact on ROI:
- At $150 cost: $2,040 revenue = 1,260% ROI
- At $208.75 true cost: $2,040 revenue = 877% ROI
- Difference: 383 percentage points of phantom profit
Revenue Per Email (RPE) Optimization
RPE is the ultimate email performance metric—it ties directly to revenue.
RPE Formula:
Revenue Per Email = Total Email Revenue / Emails Sent
RPE Benchmarks by Email Type:
| Email Type | Average RPE | Top Performers |
|---|---|---|
| Cart Abandonment | $5-15 | $20+ |
| Browse Abandonment | $2-5 | $8+ |
| Welcome Series | $1-3 | $5+ |
| Post-Purchase | $0.50-2 | $4+ |
| Win-Back | $0.25-1 | $2+ |
| Promotional | $0.10-0.50 | $1+ |
| Newsletter | $0.05-0.25 | $0.50+ |
Improving RPE:
1. Increase Average Order Value:
| Tactic | Typical Lift |
|---|---|
| Cross-sell recommendations | +15-25% |
| Free shipping threshold | +10-20% |
| Bundle offers | +20-35% |
| Limited-time upgrades | +10-15% |
2. Increase Conversion Rate:
| Tactic | Typical Lift |
|---|---|
| Single clear CTA | +20-30% |
| Mobile optimization | +15-25% |
| Personalized products | +10-20% |
| Urgency/scarcity | +15-25% |
| Social proof | +10-15% |
3. Increase Click Rate:
| Tactic | Typical Lift |
|---|---|
| Better subject lines | +20-40% |
| Segmentation | +15-30% |
| Send time optimization | +10-20% |
| Preview text optimization | +10-15% |
RPE Calculation Example:
- 25,000 emails sent
- $2,040 revenue generated
- RPE = $2,040 / 25,000 = $0.082 per email
- Benchmark: $0.10-0.50 for promotional
- Status: Below average, needs optimization
Email Automation ROI
Automated flows generate 320% more revenue than campaigns. Here's how to measure them:
Key Automated Flow Performance:
| Flow Type | Avg Revenue/Recipient | Setup Effort | Priority |
|---|---|---|---|
| Cart Abandonment | $5-15 | Medium | 1 (must-have) |
| Welcome Series | $3-8 | Medium | 2 |
| Browse Abandonment | $2-5 | High | 3 |
| Post-Purchase | $1-4 | Low | 4 |
| Win-Back | $0.50-2 | Medium | 5 |
| Birthday/Anniversary | $1-3 | Low | 6 |
Cart Abandonment Sequence (3-Email Example):
| Timing | Open Rate | Conversion | Revenue/Email | |
|---|---|---|---|---|
| Email 1 | 1 hour | 45% | 5% | $7.50 |
| Email 2 | 24 hours | 40% | 3% | $4.50 |
| Email 3 | 72 hours | 35% | 2% | $3.00 |
| Total | — | — | 10% | $15.00 |
Automation ROI Formula:
Automation ROI = (Annual Flow Revenue - Annual Flow Cost) / Annual Flow Cost
Example ROI Calculation:
| Component | Amount |
|---|---|
| Cart abandonment sends/year | 50,000 |
| Revenue per email | $8.00 |
| Annual revenue | $400,000 |
| Platform cost (portion) | $3,000 |
| Setup/maintenance | $2,000 |
| Annual Flow Cost | $5,000 |
| ROI | 7,900% |
Automation vs Campaign Comparison:
| Metric | Automations | Campaigns |
|---|---|---|
| Revenue per email | $3-15 | $0.10-0.50 |
| Time investment | Front-loaded | Ongoing |
| Personalization | High (behavioral) | Medium (segment) |
| Scale | Unlimited | Limited by frequency |
List Quality and Deliverability Impact
A poorly maintained list kills ROI through low deliverability and engagement.
Deliverability Benchmarks:
| Metric | Healthy | Warning | Critical |
|---|---|---|---|
| Deliverability Rate | 97%+ | 94-97% | <94% |
| Bounce Rate | <2% | 2-5% | >5% |
| Spam Complaint Rate | <0.1% | 0.1-0.3% | >0.3% |
| Unsubscribe Rate | <0.5% | 0.5-1% | >1% |
Cost of Poor Deliverability:
| Scenario | Delivered | Opens | Clicks | Revenue |
|---|---|---|---|---|
| 98% deliverability | 24,500 | 8,575 | 600 | $2,040 |
| 94% deliverability | 23,500 | 8,225 | 576 | $1,958 |
| 90% deliverability | 22,500 | 7,875 | 551 | $1,873 |
| Revenue lost (90% vs 98%) | — | — | — | $167 |
List Hygiene Best Practices:
| Action | Frequency | Impact |
|---|---|---|
| Remove hard bounces | Automatic | Protects sender reputation |
| Clean soft bounces | After 3-5 attempts | Improves deliverability |
| Re-engage inactive (90 days) | Monthly | Recovers 5-10% |
| Sunset inactive (180 days) | Monthly | Improves metrics |
| Validate new subscribers | On signup | Prevents invalid emails |
The Cost of a Dead Subscriber:
- 180-day inactive subscriber on Klaviyo (50K list): ~$0.14/month
- If 20% of list is dead: 10,000 × $0.14 = $1,400/month wasted
- Plus: Drags down open rates, hurting sender reputation
- Action: Sunset after win-back attempt at 120-180 days
Segmentation Impact on ROI
Segmented campaigns earn 760% more revenue than non-segmented sends.
Segmentation Performance Lift:
| Segment Type | Open Rate Lift | Revenue Lift |
|---|---|---|
| Purchase history | +20-30% | +50-100% |
| Engagement level | +15-25% | +30-50% |
| Browse behavior | +25-35% | +75-150% |
| Demographics | +10-15% | +20-30% |
| Geographic | +5-10% | +10-20% |
High-Value Segments to Create:
| Segment | Definition | Email Strategy |
|---|---|---|
| VIP/High Value | Top 10-20% by revenue | Exclusive offers, early access |
| Recent Purchasers | Bought in last 30 days | Cross-sell, review request |
| At-Risk | 60-90 days since purchase | Win-back offer |
| Cart Abandoners | Added to cart, didn't buy | Urgency, discount ladder |
| Engaged Non-Buyers | Opens/clicks, no purchase | Social proof, testimonials |
| Category Browsers | Viewed specific category | Category-specific content |
Segmentation ROI Example:
Non-Segmented Campaign:
- 25,000 emails, 2.5% CTR, 3% conversion = 19 orders
- Revenue: $1,615
Segmented Campaigns (same 25,000 total):
| Segment | Size | CTR | Conv | Orders | Revenue |
|---|---|---|---|---|---|
| VIP (high value) | 2,500 | 5% | 6% | 7.5 | $956 |
| Recent buyers | 5,000 | 4% | 5% | 10 | $850 |
| Engaged browsers | 7,500 | 3.5% | 4% | 10.5 | $893 |
| General list | 10,000 | 2% | 2.5% | 5 | $425 |
| Total | 25,000 | — | — | 33 | $3,124 |
Lift: +93% revenue from same list size
Pro Tips
- 💡Calculate true campaign cost including platform fees, design, copy, and your time. Most marketers underestimate costs by 40-60%, inflating perceived ROI.
- 💡Prioritize cart abandonment automation first—it generates $5-15 per email with minimal ongoing effort after setup.
- 💡Segment by engagement level. Sending to your entire list drags down metrics; VIPs deserve different treatment than cold subscribers.
- 💡Focus on revenue per email (RPE) over open rates. A low-open, high-converting email beats a high-open, low-converting one every time.
- 💡Clean your list monthly. Dead subscribers cost money, hurt deliverability, and skew your performance metrics downward.
- 💡Welcome emails get 68.6% open rates—capitalize on this 24-48 hour window with your best offer or content.
- 💡Automated emails generate 320% more revenue than campaigns. Build your flows before scaling promotional frequency.
- 💡Track iOS open rate inflation. Compare click-to-open rates over time rather than raw open rates for accurate trending.
- 💡A/B test one variable per campaign: subject line, send time, CTA, or design. Testing multiple variables confounds results.
- 💡Sunset inactive subscribers after win-back attempts fail (180 days). The list quality improvement outweighs the lost volume.
Frequently Asked Questions
The average email marketing ROI is $36-40 for every $1 spent, making it the highest-ROI digital marketing channel. Top performers achieve $45-70 per $1 spent, while bottom quartile sees $15-25. E-commerce businesses with strong automation can reach $68+ per $1. If your ROI is below $20 per $1, there's significant room for improvement through better segmentation, automation, and list hygiene.
