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Continuously seek to optimize and improve your efforts, making sure to stay increasingly profitable along the way. That said, don’t worry about achieving a 3,500% ROI from your first few email campaigns. The average ROI for an email marketing campaign is $36 generated for every $1 spent. This can include software, miscellaneous tools or equipment, and employee salary. The variable “total costs” is the total expenses associated with running an email campaign. If 5% of leads convert to paying customers, then each lead would be worth $4.95 to your business. For example, let’s say you are selling a product for $99. If you are also including leads as part of your gains, find out how much a lead is worth to your business. If you are measuring it by the sales of a product or service, simply add together the total sales. The variable “total gains” is the total amount of money generated from an email campaign. To calculate email marketing ROI by hand, you can use the following formula:Įmail marketing ROI = (Total gains – total costs) / Total costs x 100

How Do You Calculate Email Marketing ROI? Once the ROI is calculated, a business can use that number to determine the effectiveness of the email marketing campaign, and make alterations or improvements if necessary. This figure is calculated by comparing the total gains of the marketing effort, such as new sales or leads, to the total costs of the marketing campaign, such as equipment costs and salary expenses. Email marketing ROI is the return on investment generated from a company’s email marketing campaign.