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Businessmarketing

Email Marketing ROI Calculator

Email campaign returns through the full funnel. Three rates multiply, so respectable-sounding figures at each stage compound into well under one percent of the list ordering.

Also called: email campaign roi, newsletter roi.

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Return on investment
2

2x return: $69,984.00 of revenue from 35,000 of cost, a profit of $34,984.00. 39 orders from a list of 45,000, which is 0.09% of it.

Revenue
$69,984.00
Net profit
$34,984.00
Opens
10,800
Clicks
1,296
Orders
39
Share of the list that ordered
0.09%
Revenue per subscriber
$1.56
Method and background

How this is calculated

Opens, clicks and conversions each cut the audience. A 24 percent open rate, 12 percent click rate and 3 percent conversion leaves under a tenth of a percent of the list ordering, which is normal and worth internalising before setting a target. Revenue per subscriber is the number to track across campaigns, since it survives list growth in a way total revenue does not.

each stage multiplies, which is why the final conversion is far smaller than any single rate suggests
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List size

Method and limits

What it assumes

  • Rates apply to the full list, ignoring bounces and unsubscribes.

What it deliberately does not model

  • Open rates have been unreliable since mail clients began prefetching images.
  • It ignores the cost of list decay and the long-term value of a subscriber.

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Frequently asked questions

Why is my conversion so low as a share of the list?
Because the three rates multiply. Each is respectable on its own and the product is under a percent, which is the normal shape of email.