Email Marketing ROI

Despite the rise of social media and influencer marketing, email marketing remains the most profitable digital channel, frequently generating massive returns on investment. This is because email lists are "owned media"—you do not have to pay an algorithmic toll to a tech giant every time you want to speak to your customers. However, accurately forecasting the revenue from an email blast requires understanding the conversion funnel. A 100,000-person email list does not equal 100,000 buyers. The list must be filtered sequentially through deliverability rates, open rates, click-through rates (CTR), and finally, website conversion rates. This calculator models the exact financial outcome of an email campaign by applying industry-standard funnel metrics against your list size and Average Order Value (AOV), allowing marketers to project sales and justify software costs.

The algorithm filters the subscriber count sequentially. First, it multiplies the list size by the Open Rate to find total opens. It multiplies the opens by the Click Rate to find the exact number of people who arrive at your website. It multiplies those website visitors by the Conversion Rate to project total sales. To find Gross Revenue, it multiplies the sales by the Average Order Value (AOV). It then subtracts the Platform Cost to reveal the Est. Net Revenue. Finally, it divides the net revenue by the total list size to find the Revenue Per Subscriber.

Est. Net Revenue is the final projected profit from the email blast after paying for the software. Est. Sales tells your fulfillment team exactly how many orders to expect. Rev Per Subscriber is a critical macro metric; it allows you to easily calculate the value of acquiring a new email lead. If your revenue per subscriber is $0.50, you can safely spend up to $0.49 on Facebook Lead Ads to acquire an email address and remain profitable.