How It's Calculated
The model follows the same funnel an email campaign actually moves through: a subscriber opens the email, clicks through to your store, and then converts into an order. Each rate is applied to the step before it.
- Revenue per campaign= list size × open rate × click rate × conversion rate × average order value. Each percentage is divided by 100 before it is applied.
- Monthly email revenue= revenue per campaign × campaigns per month.
- Net monthly= monthly email revenue − email platform monthly cost.
- ROI= net monthly ÷ platform cost × 100, expressed as a percentage. When the platform cost is zero, ROI is shown as 0% to avoid dividing by zero.
Worked example
With a 10,000-subscriber list, 4 campaigns per month, a 35% open rate, a 2.5% click rate, a 3% conversion rate, a $65 average order value, and a $150 platform cost:
- Revenue per campaign = 10,000 × 0.35 × 0.025 × 0.03 × $65 = $170.63
- Monthly email revenue = $170.625 × 4 = $682.50
- Net monthly = $682.50 − $150 = $532.50
- ROI = $532.50 ÷ $150 × 100 = 355%
What Moves The Number Most
- List quality and size: engaged subscribers convert; cleaning inactive contacts often lifts both deliverability and rates.
- Open and click rates: subject lines, sender reputation, segmentation, and offer relevance drive the top of the funnel.
- Conversion rate and AOV: landing experience, product fit, bundles, and thresholds turn clicks into bigger orders.
- Send frequency: more campaigns can raise revenue, but watch for fatigue and unsubscribes that erode the list.
This calculator models campaign (broadcast) revenue. Automated flows such as welcome, browse-abandon, and post-purchase sequences typically add meaningful revenue on top of what you see here.
Trying to pick a platform? See our breakdown of Klaviyo vs Privy for ecommerce email marketing to decide which tool fits the list size and ROI you just modeled.