Email Marketing ROI Calculator

Email Marketing ROI Calculator

Email marketing consistently ranks among the highest-ROI channels available to e-commerce businesses - largely because the marginal cost of sending one more email is close to zero, unlike paid advertising's per-click or per-impression cost structure.

Formula

1. Orders = Emails Sent x Conversion Rate%
2. Revenue = Orders x Average Order Value
3. ROI% = ((Revenue - Campaign Cost) / Campaign Cost) x 100

Example

10,000 emails sent, 2% conversion rate, $60 average order value, $200 campaign cost:

Orders = 200 → Revenue = $12,000 → ROI = 5,900%

Why Email ROI Runs So High

Unlike paid ad channels where cost scales directly with reach, an email list's marginal sending cost barely changes whether you email 1,000 or 100,000 subscribers - this structural cost advantage is exactly why email marketing so consistently outperforms paid channels on a pure ROI basis, provided list quality, segmentation, and engagement remain strong (a large but unengaged or purchased list will convert far below these kinds of figures).