Email Marketing ROI

How the funnel is calculated

The tool chains your rates down a monthly funnel — each stage is a percentage of the one before it, not of the whole list, and each stage is rounded to whole people before the next step:

1. Opens — list size × open rate. Clicks — opens × click rate (click rate is measured of opens). Conversions — clicks × conversion rate (measured of clicks). Because each stage rounds to whole subscribers, small lists can show step changes when a rate nudges a stage across a rounding boundary — that is deliberate: fractional people don’t buy.
2. Revenue and profit — conversions × average order value, minus your monthly platform cost. Revenue per subscriber divides that revenue across the whole list.
3. ROI — profit ÷ platform cost, as a percentage. At ₹0 cost the division is undefined, so the tool shows “—” instead of a fake figure — every rupee is profit, but a percentage return on zero investment has no meaning.

Worked example (the tool’s defaults): 5,000 subscribers at a 22% open rate → 1,100 opens; 3.5% of those click → 39 clicks; 2% of clicks convert → 1 conversion × ₹1,800 = ₹1,800 revenue against a ₹5,000 platform cost — a −64% ROI. Small lists at average rates often run email at a loss, which is exactly what this tool is meant to surface.

How to interpret your results

Work the funnel from the top: an open-rate lift multiplies through every stage below it, which is why subject lines and send times are usually the cheapest wins. Click and conversion improvements come from content, segmentation, and offer quality — the compounding is the reason a few decimal points at each stage can double revenue. If the numbers only work at unrealistic rates, grow the list or raise order value instead of forcing the rates. The segmentation, drip campaigns, and follow-ups behind these numbers are what our CRM & marketing automation service builds.