The Email Marketing ROI Formula
Email ROI = (Subscribers × Revenue per subscriber per year) − Platform annual cost
Break-even revenue per subscriber = Platform annual cost ÷ Subscriber count
Platform Costs by List Size
| Platform | 1,000 subs | 5,000 subs | 25,000 subs |
|---|---|---|---|
| Mailchimp Standard | $20/mo ($240/yr) | ~$75/mo (~$900/yr) | ~$250/mo (~$3,000/yr) |
| Kit (ConvertKit) Creator | $39/mo ($468/yr) | ~$79/mo (~$948/yr) | ~$179/mo (~$2,148/yr) |
| beehiiv Scale | $49/mo ($588/yr) | $49/mo ($588/yr) | $49/mo ($588/yr) |
| ActiveCampaign Starter | $15/mo ($180/yr) | ~$79/mo (~$948/yr) | ~$229/mo (~$2,748/yr) |
| Brevo Standard | $18/mo ($216/yr) | $18/mo ($216/yr) | ~$65/mo (~$780/yr) |
Note: beehiiv Scale has unlimited subscribers at $49/mo flat. Brevo charges by email sends (5,000/mo on Standard at $18/mo), not contacts. Prices for Mailchimp, Kit, and ActiveCampaign scale with subscriber count.
Break-Even: Revenue Per Subscriber Needed
How much annual revenue must each subscriber generate to cover the platform cost?
| Platform (at 5K subs) | Annual Cost | Revenue/Sub/Year Needed |
|---|---|---|
| Brevo Standard | $216 | $0.04/sub |
| beehiiv Scale | $588 | $0.12/sub |
| Mailchimp Standard | ~$900 | $0.18/sub |
| Kit Creator | ~$948 | $0.19/sub |
| ActiveCampaign Starter | ~$948 | $0.19/sub |
Key Insight
At $0.04–$0.19 per subscriber per year break-even, email marketing is profitable for virtually any business that sells anything. A single $50 product sale from a 5,000-person list pays for the platform for the entire year on most platforms. Email marketing ROI is almost always positive.
ROI Scenarios: 5,000 Subscribers
| Revenue/Sub/Year | Annual Revenue | Mailchimp Profit | beehiiv Profit | Brevo Profit |
|---|---|---|---|---|
| $1/sub | $5,000 | $4,100 | $4,412 | $4,784 |
| $5/sub | $25,000 | $24,100 | $24,412 | $24,784 |
| $20/sub | $100,000 | $99,100 | $99,412 | $99,784 |
Frequently Asked Questions
What's a realistic revenue per subscriber?
It varies widely. Newsletter creators with sponsorships: $0.50–$5/sub/year. E-commerce: $5–$50/sub/year. SaaS with high LTV: $10–$100/sub/year. Course creators: $5–$30/sub/year. Even conservative estimates show positive ROI for email marketing.
Why is beehiiv the best value at 25,000+ subscribers?
beehiiv Scale costs $49/mo regardless of subscriber count. At 25,000 subscribers, that's $0.002/subscriber/month. Mailchimp Standard at 25,000 subscribers costs ~$250/mo — 5x more. Plus beehiiv's built-in ad network and referral program can generate revenue that offsets or exceeds the subscription cost.
Should I optimize for the cheapest platform or the highest revenue per subscriber?
Revenue per subscriber matters more than platform cost. ActiveCampaign at $948/yr with advanced automation might generate $10/sub/year through better sequences, while a cheaper platform generates $5/sub/year. The $732 cost difference is dwarfed by $25,000 in additional revenue at 5,000 subscribers.