SMS Marketing ROI Calculator

Calculate SMS marketing return on investment. Enter SMS campaign revenue and costs to see your ROI percentage, cost per message, and revenue per send.

Number of SMS recipients
$
$
Unsubscribes per campaign
$
SMS ROI
680.0%
Excellent — above 500% target
Profit
$3,910.00
Revenue $4,485.00 − Cost $575.00
Revenue per 1K Messages
$179.40
Benchmark: $45
Revenue per Message
$0.1794
Total revenue ÷ messages sent
Cost per Conversion
$8.33
All-in cost ÷ conversions
Conversions
69
2,750 clicks × 2.5% CVR
Estimated Opt-Outs
200
0.8% of 25,000 subscribers
Cost per Opt-Out
$2.88
Hidden cost of subscriber churn

Conversion Funnel

Messages Sent: 25,000100%
Clicks: 2,75011.0%
Conversions: 690.3%

Campaign Type Benchmarks

TypeAvg CTRAvg CVROpt-OutRPM
promotional11.2%2.5%0.8%$45
transactional18%0.5%0.1%$12
flash sale14.5%4.2%1.2%$72
loyalty9.8%3.1%0.3%$55
cart recovery21%8.5%0.4%$110

Cost Breakdown

ComponentAmountShare
Message Cost$375.0065.2%
Platform Fee$200.0034.8%
Total Cost$575.00100%
Planning notes, formulas, and examples

About the SMS Marketing ROI Calculator

SMS marketing delivers some of the highest engagement rates in e-commerce, with open rates above 95% and click rates of 15–30%. But SMS also carries per-message costs that make ROI critical to track. If your SMS campaigns are not generating profitable returns, you are burning cash faster than email ever could.

This calculator takes your SMS campaign revenue and total SMS costs (platform fees, per-message charges, and any additional costs) and computes the ROI percentage directly. It also calculates revenue per message sent, cost per message, and the break-even revenue needed.

SMS works best as a complement to email for time-sensitive offers, flash sales, back-in-stock alerts, and abandoned cart recovery. Understanding ROI by campaign type helps you focus on the SMS use cases that actually drive profitable revenue.

When This Page Helps

SMS has high per-message costs compared to email. This calculator shows whether campaigns are actually profitable so you can evaluate send types, frequency, and budget with margin in mind.

How to Use the Inputs

  1. Enter the total revenue attributed to your SMS campaigns.
  2. Enter the total cost of SMS (platform fee + per-message costs).
  3. Enter the number of messages sent.
  4. View your ROI, revenue per message, and cost per message.
  5. Compare ROI across different SMS campaign types.
  6. Use results to determine optimal SMS frequency and audience targeting.
Formula used
ROI = ((SMS Revenue − SMS Cost) / SMS Cost) × 100 Revenue per Message = SMS Revenue / Messages Sent Cost per Message = SMS Cost / Messages Sent Profit = SMS Revenue − SMS Cost

Example Calculation

Result: ROI: 700% | Revenue per Message: $0.24 | Cost per Message: $0.03

ROI = ($12,000 − $1,500) / $1,500 × 100 = 700%. Revenue per message = $12,000 / 50,000 = $0.24. Cost per message = $1,500 / 50,000 = $0.03. Each dollar spent on SMS generates $8 in revenue. This is a well-performing SMS program.

Tips & Best Practices

  • Abandoned cart SMS typically delivers the highest ROI — prioritize this automation.
  • Keep SMS messages short and include one clear CTA with a direct link.
  • SMS works best for time-sensitive offers: flash sales, limited stock, and expiring discounts.
  • Segment your SMS list by purchase behavior to avoid irrelevant messages and opt-outs.
  • Track opt-out rates alongside ROI — high ROI with high churn is unsustainable.
  • Compare SMS ROI to email ROI to optimize your channel mix.
  • Always include proper opt-out language to comply with TCPA regulations.

SMS Marketing Economics

The economics of SMS differ from email because each message has a direct cost. A 50,000-subscriber list sent 8 messages monthly at $0.02 each costs $8,000/month just in messaging fees. The revenue must exceed this threshold before you even consider platform costs and labor.

Optimizing SMS ROI

The highest-ROI SMS strategies are: (1) abandoned cart recovery (15–25% recovery rates), (2) flash sale announcements (leverage urgency), (3) VIP or loyalty member exclusives, and (4) back-in-stock notifications. Each of these targets high-intent audiences with timely, relevant messages.

Compliance Considerations

SMS marketing is regulated by TCPA in the US, CASL in Canada, and GDPR in Europe. Non-compliance can result in fines of $500–1,500 per unsolicited message. Always obtain explicit opt-in consent, include opt-out instructions, and respect quiet hours (typically 8 PM–9 AM).

Sources & Methodology

Last updated:

Frequently Asked Questions

  • An SMS ROI of 500% or higher (5:1 return) is considered strong for e-commerce. Top performers see 1,000–2,500%. Below 200% may indicate poor targeting, weak offers, or an audience that doesn't respond well to text marketing.