← Email / SMS ROI Calculator

Methodology

This page explains how the Email / SMS Marketing ROI Calculator estimates revenue, cost, ROI, and how it ranks platforms. Formulas are implemented in open source code under src/lib/emailsms/.

Revenue model

Monthly attributed campaign revenue uses your per-thousand-send economics:

emailRevenue = (emailsPerMonth / 1,000) × emailRevenuePer1000Sends

smsRevenue = (smsMessagesPerMonth / 1,000) × smsRevenuePer1000Sends

totalRevenue = emailRevenue + smsRevenue

You can also enter an expected conversion rate and average revenue per conversion in the wizard. Those fields power a conversion cross-check on the results page only — they are not added to total revenue, to avoid double-counting the same outcomes twice.

Cost model

monthlyCost = platformCost + smsPassThrough + operatingCosts

Platform cost

We match your contact list size to each provider's illustrative pricing tiers in code (see provider detail pages). The engine picks the cheapest paid tier that fits your list; if the list exceeds all tiers, the highest tier is used. Free tiers apply when your list fits within the documented free limits.

SMS pass-through

SMS is estimated at roughly $0.02 per message times your monthly SMS volume, unless bundled in a plan (we still show this line so you can see variable spend). Real carrier and country rates differ — adjust your inputs accordingly.

Operating costs

The sum of your monthly content/design spend and additional tool costs (Zapier, analytics, etc.).

Monthly platform budget

Your stated budget is used in the recommendation engine for cost fit scoring, not as an extra line item in the ROI denominator.

ROI

roiPercent = ((totalRevenue − monthlyCost) / monthlyCost) × 100

When monthly cost is zero but revenue is positive, ROI is undefined — the UI shows "N/A" instead of infinity.

Ranges: conservative, base, and upside

Revenue scenarios use simple multipliers on the base monthly revenue:

Costs use the same base cost in the monthly snapshot; first-year cost uses a ±10% band for the range display.

First-year projection

Each month, contact list size compounds by your monthly growth rate. Email and SMS send volumes scale proportionally with list size (relative to month zero). Revenue and cost are recomputed each month and summed.

Break-even month is the first month where cumulative base net (revenue − cost) turns positive.

Platform scoring & recommendations

Each provider has editorial scores (1–10) across eight dimensions. The engine weights dimensions by your business type, send volume, channel preferences, feature checkboxes, technical comfort, main priority, and estimated monthly cost vs budget.

Illustrative guidance baked into scoring:

Important disclaimers