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Email Marketing Glossary.

Clear, no-fluff definitions of every email marketing term that matters—from open rates to double opt-in. 

 

Email ROI

Email ROI (return on investment) measures the revenue generated for every dollar spent on email marketing. It's consistently one of the highest returns of any marketing channel.

Also known as: email marketing ROI, return on investment

Email marketing routinely tops the charts for ROI, often cited at roughly $36–$40 back per dollar spent. That efficiency is why email remains a cornerstone of ecommerce growth.

How is email ROI calculated?

Email ROI = [(revenue from email − cost of email) ÷ cost of email] × 100. Costs include your platform, design, and team time; revenue is what your emails drove.

Why is email ROI so high?

You own the channel, reach an opted-in audience directly, and automate high-intent messages like abandoned cart and welcome flows — all at low cost.

How do you improve email ROI?

Lean into automations, segment and personalize, keep your list clean, and cut waste. Estimate your return with Drip's free Email Marketing ROI Calculator.

Related terms

Open Rate Click-Through Rate (CTR) Click-to-Open Rate (CTOR) Conversion Rate Bounce Rate Unsubscribe Rate

Related reading from Drip

How to Determine Your Email Marketing ROI How to Find Your Exact ROI on Email Subscribers

Frequently asked questions

What is email marketing ROI?
Email ROI is the return on investment from email marketing — the revenue generated for every dollar spent. It's consistently one of the highest-returning channels in marketing.
How do you calculate email ROI?
Subtract the cost of your email program from the revenue it generated, divide by the cost, and multiply by 100. Costs typically include your platform, design, and team time.
What is a good email marketing ROI?
Industry figures often cite roughly $36–$40 in return per dollar spent, though it varies by business. Ecommerce brands with strong automations and segmentation tend to see the highest returns.
Why does email have such high ROI?
You own the channel, reach an opted-in audience directly without paying per impression, and can automate high-intent messages like abandoned cart and welcome flows at low ongoing cost.
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