How the Calculator Works: Methodology
Last updated: May 2026
Core Calculation Formulas
Our calculator uses industry-standard ROI formulas adapted for email marketing. Here's exactly how each metric is calculated.
Email Revenue
Email Revenue = Monthly Volume × Deliverability Rate × Open Rate × CTR × Conversion Rate × AOV
This formula models the full email marketing funnel: how many emails are sent, how many reach inboxes, how many are opened, how many generate clicks, how many convert, and the value of each conversion. Each step is a multiplier, which means small improvements at the top of the funnel compound significantly.
Total Cost
Total Cost = ESP Cost + (Labor Hours × Hourly Wage) + Design/Copy Costs + Additional Fees
We take a comprehensive view of email marketing costs, including both direct (ESP subscription) and indirect (labor, tools) expenses. Additional fees in Advanced Mode include list cleaning, email verification, and dedicated IP costs.
Net Profit
Net Profit = Email Revenue - Total Cost
ROI Percentage
ROI (%) = (Net Profit / Total Cost) × 100
This is the standard ROI formula used across all business domains. A positive ROI means you're earning more than you spend. The average email marketing ROI is 3,600% (DMA), meaning $36 earned for every $1 spent.
ESP Savings
Monthly Savings = Current Total Cost - Alternative Total Cost
Since revenue is the same regardless of which ESP you use (assuming equal deliverability), the savings come entirely from the difference in ESP subscription costs and any feature-related efficiencies.
Deliverability Uplift
Revenue Uplift = Revenue at (Current Deliverability + 5%) - Revenue at Current Deliverability
This shows the potential revenue gain from improving deliverability by 5 percentage points, which is achievable through better list hygiene, authentication setup, and sender reputation management.
Industry Benchmarks
Our default values and industry presets are based on the following sources:
| Metric | Industry Average | Source |
|---|---|---|
| Deliverability Rate | 83% | Campaign Monitor 2024 |
| Open Rate (All) | 22% | Mailchimp Benchmarks 2024 |
| Open Rate (E-commerce) | 18.2% | Mailchimp Benchmarks 2024 |
| Open Rate (SaaS) | 24.5% | HubSpot 2024 |
| CTR (All) | 2.5% | Mailchimp Benchmarks 2024 |
| Conversion Rate | 1.5% | Campaign Monitor 2024 |
| Average ROI | 3,600% | DMA Response Rate Report |
For a complete list, see our Benchmarks & Data Sources page.
Limitations & Notes
- Estimates only: Calculator results are estimates based on your inputs and industry averages. Actual results vary by business, industry, and campaign quality.
- Not financial advice: This tool is for educational and planning purposes. Consult a financial professional for investment decisions.
- Deliverability assumption: We assume equal deliverability between ESPs in the comparison. In practice, deliverability varies by provider and setup.
- Revenue attribution: The formula attributes all email-driven revenue to the email channel. Multi-touch attribution may give different results.
- Industry data lag: Benchmarks are updated annually. Recent algorithm changes (like Apple MPP) may affect open rate data accuracy.
ESP Pricing Sources
ESP pricing is based on publicly available pricing pages for approximately 50,000 subscribers. Actual pricing varies based on subscriber count, features, and negotiated discounts. Always check the ESP's website for current pricing.