The ROI of Email Marketing: How to Measure, Improve, and Maximize Growth
Is email marketing still worth the investment in 2025? For SaaS founders and marketers juggling rising acquisition costs and shifting ad budgets, this is a common question. The truth is, email continues to deliver one of the highest ROIs of any marketing channel—often outperforming paid ads and even content marketing.
In this guide, we’ll break down what email marketing ROI really means, show you how to calculate it, share industry benchmarks, and highlight proven strategies SaaS companies use to turn email into a growth engine.
If you’ve ever wondered how much value your campaigns truly deliver, you’re about to get the clarity you need.
Why Email Marketing Still Delivers in 2025
If you run a SaaS or digital business, chances are you’ve asked yourself: Is email marketing still worth the effort? With rising ad costs and more noise across social platforms, email remains one of the few channels you fully own.
The return on investment (ROI) from email marketing is consistently among the highest of all marketing activities. Studies in 2025 show that every $1 spent on email brings back $36–$40 in revenue on average. For SaaS, where retention and upselling matter just as much as acquisition, the upside is even bigger.
What Does ROI of Email Marketing Actually Mean?
At its core, email marketing ROI measures how much revenue you generate compared to what you spend on campaigns.
The formula is straightforward:
ROI (%) = [(Revenue from email – Cost of email) ÷ Cost of email] × 100
Costs typically include your email platform subscription, copywriting or design, automation tools, and staff time. Revenue includes direct conversions (like sign-ups or upgrades) and indirect value (renewals or reduced churn).
👉 Want to skip the manual math? Use our Email Marketing ROI Calculator to plug in your numbers and see your results instantly.
Benchmarks You Can Use in 2025
Knowing your ROI is useful, but how do you compare to others in SaaS? Here are current benchmarks:
| Metric | Typical Range | SaaS Leaders Achieve |
|---|---|---|
| Open Rate | 25–35% | 40%+ with personalization |
| Click-Through Rate (CTR) | 3–6% | 8–12% |
| Conversion Rate | 2–5% | 6–10% |
| ROI | 36:1 average | 50:1 or higher |
These numbers are averages. A startup with small lists may see different results than a scaled SaaS platform. What matters most is tracking ROI over time and aiming for steady improvement.
Why Email ROI Is Especially Strong for SaaS
Unlike other industries, SaaS thrives on recurring revenue. That makes email one of the most powerful tools because it:
- Supports retention: Renewal reminders and feature updates keep customers engaged.
- Drives upgrades: Automated “you’ve hit your limit” emails nudge users to higher tiers.
- Reduces churn: Win-back and reactivation campaigns extend lifetime value.
- Scales affordably: Adding 1,000 more subscribers doesn’t raise costs as much as 1,000 more paid ad clicks.
If you want to see how customer value impacts ROI, check out our Customer Loyalty Value Calculator.
Practical Ways to Boost Your ROI
Here’s where the numbers get exciting. A few targeted improvements can double your ROI.
1. Automate Lifecycle Emails
Onboarding sequences, renewal nudges, and reactivation flows can run in the background and generate conversions automatically.
2. Segment and Personalize
Generic blasts don’t cut it anymore. Use product usage data to tailor offers. For example, a user who’s close to storage limits should receive an upgrade prompt.
3. Test and Optimize
Run A/B tests on subject lines, send times, and CTA placement. Small changes often add up to major gains.
4. Track Costs Accurately
Don’t forget to include time spent by your marketing team when measuring ROI. This will give you a clearer view of true performance.
For related insight, you can also calculate customer acquisition efficiency with our CAC Calculator.
Example ROI Calculation for a SaaS Startup
Let’s say your SaaS company spends $5,000 on email campaigns in a quarter. Those campaigns generate $200,000 in subscription revenue directly attributed to emails.
ROI = [(200,000 – 5,000) ÷ 5,000] × 100 = 3,900%
That’s a return of $39 for every $1 spent. Numbers like these explain why SaaS companies continue to prioritize email even as new channels emerge.
How Email ROI Compares to Other Channels
- Paid ads: Average ROI ~17:1, but costs are rising.
- Content marketing: ROI around 22:1, strong for long-term growth.
- Email marketing: ROI ~36:1, leading the pack in 2025.
When budgets are tight, email often outperforms other channels in efficiency. To explore channel comparisons further, try our Marketing Campaign Cost Calculator.
FAQs About Email Marketing ROI
What is a good ROI for email marketing?
Most SaaS companies should aim for at least 30:1 ROI, though best-in-class performers reach 50:1+.
How do you measure ROI from email campaigns?
Track revenue directly attributed to email clicks and conversions, then compare it to campaign costs.
Can automation really boost ROI?
Yes. Automated flows like onboarding or churn-prevention emails often drive higher ROI than one-off newsletters.
Is email still relevant with AI chatbots and social media?
Absolutely. Email is a channel you own and control, which makes it a reliable long-term asset.