Email & SMS Marketing ROI Calculator
Turn your list size and campaign results into revenue, profit, and return on what you spend.
How the Email & SMS Marketing ROI Calculator Works
Email and SMS are owned channels. Once someone is on your list, you reach them without paying for each click, which is why these channels often return more than paid ads. They still cost money in platform fees, message charges, and agency time, so the real question is how much profit is left after those costs.
Enter your active list size, how many campaigns you send each month, your click-through rate, the conversion rate on those clicks, your average order value, your gross margin, and your monthly platform and agency cost. The tool estimates total sends, orders, attributed revenue, and gross profit, then subtracts your monthly cost to show net profit, net ROI, and profit per recipient.
Key Formulas Behind This Tool
- Messages Sent: List Size x Campaigns per Month
- Orders: Messages Sent x Click-Through Rate % x Conversion Rate %
- Attributed Revenue: Orders x Average Order Value
- Gross Profit from Email/SMS: Attributed Revenue x Gross Margin %
- Net Monthly Profit: Gross Profit - Monthly Platform and Agency Cost
- Net ROI (%): (Net Monthly Profit / Monthly Cost) x 100
- Profit per Recipient: Net Monthly Profit / List Size
Frequently Asked Questions (FAQ)
How does this calculator estimate email and SMS revenue?
It multiplies list size by campaigns per month to get total sends, applies your click-through rate to get clicks, applies your conversion rate to the clicks to get orders, and multiplies the orders by your average order value.
What conversion rate should I enter?
Enter the percentage of clicks that turn into orders, which is the on-site conversion rate for traffic from your messages. Do not enter the percentage of recipients who buy, because that figure already includes the click rate.
Why does the tool use gross profit and not revenue for ROI?
Revenue ignores what the products cost you. Gross profit (revenue multiplied by gross margin) is what is left to pay for the platform and agency, so ROI based on it shows whether the program really earns money.
What costs should I include in monthly platform and agency cost?
Include your email or SMS platform fee (SMS also charges per message), agency or freelancer fees, and any tools used only for these channels. If you pay per message, divide the total by the month.
Why is attributed revenue only an estimate?
Platforms use attribution windows and rules, and some of those customers would have bought anyway. Treat the figure as a planning estimate and compare it with the reports in your own email or SMS platform.