How Much Does Email Marketing Cost in 2025?

Even today the only marketing cost that still remains affordable and profitable to every business is email marketing cost. It has the highest ROI – 3600%.

Moreover, even with a minimal cost you can establish a direct communication line without any algorithmic restrictions using email marketing.

Now the million dollar question: What is the cost of email marketing? Generally, the US email marketing cost is $50 – $1500 per month.

But that’s just the tip of the iceberg. The average cost of an email marketing campaign can vary based on several key factors.

In this blog, we will have a detailed view of

• What impacts the total cost of email marketing
• Factors to consider while planning your email marketing costs

How Much Does Marketers Spend on Email Marketing?

On average US marketers spend per year $1000-$5000 per year in email marketing. However, this is a generic price range, your actual budget can vary based on your email marketing needs.

Here is a bar chart depicting how much US marketers spend on email marketing.

5 Factors to Consider in Email Marketing Costs

The actual email marketing budget for your business can deviate from the average.

Here are 5 factors to consider to calculating your email marketing cost:

• Email Service Provider Costs
• Volume of Emails sent
• Number of Subscribers
• Email Marketing Features
• Migration costs

1. Email Service Provider Costs

A Solid chunk of your email marketing cost goes towards ESP ( Email Service Provider).

ESP offer software and services for sending and managing your bulk emails.

Many ESPs has now evolved into self sufficient email marketing softwares. One such ESP for marketers is Retainful.

Here are some of the features provided in an ESP:

• Scalability for sending emails
• Ready-to-use email templates
• Email list management
• Track email marketing metrics like open rates, CTR, bounce rate and unsubscribe rate.
• A/B testing
• Reliable customer support

Calculate the Return on Investment for your email campaigns with the ROI calculator.

2. Volume of Emails Sent

The average email marketing cost per month for sending 20,000 emails falls approximately between $20 and $200.

If you run an ecommerce store, the volume of emails sent is generally high. You’ll have to send transactional emails and email marketing campaigns. So it’s crucial to find an ESP that lets you send large volumes of emails at an affordable cost.

Retainful is an affordable option for sending a high volume of emails.

Here is a comparison table of the email sending limits in the free plans of the top email marketing software :

Email Marketing Software	Volume of Emails sent (Free Plan)	Price for sending 20000 emails/ month
Retainful	500/ month	$19
Klaviyo	500/ month	$60
Omnisend	500/ month	$41.30
Mailchimp	1000/month	$132.97
Brevo	300 /day	$29

3. Number of Subscribers

Many ESPs offer free plans with limitations on the number of subscribers. As you grow your email list, you’ll need to upgrade to paid plans.

The average email marketing cost for a subscriber list of around 50,000 is in the range of $250 to $700 per month.

The cost per subscriber usually decreases as your email list expands. However, the overall monthly cost increases with a larger list size.

Compare the monthly pricing of Retainful, Klaviyo, and Omnisend based on different email subscriber list sizes in the table below. These are the recommended plans for each platform.

Contacts	Retainful	Klaviyo	Omnisend
10,000	$59	$150	$105
20,000	$109	$375	$262.50
50,000	$259	$720	$500.50
100,000	$ 509	$1380	$933.80
150,000	$759	$1955	$1339.80

4. Email Marketing Features Offered

Many email service providers have now evolved into self sufficient email marketing tools. One such email service provider is Retainful.

Here are the features you’ll be able to use in Retainful in a free plan:

• Email Marketing Automation: In Retainful you’ll get pre-built automation workflows for every e-commerce needs (eg. Welcome email series, abandoned cart recovery ). You can customize every aspect of your automation workflow. You can set your triggers , delay time between emails and even include dynamic coupon codes.
• Email Newsletters and Campaigns: With a no-code drag-and-drop editor and 100+ email templates, you can send stunning email designs for newsletters and campaigns effortlessly.
• Email Segmentation: Create more sophisticated segmentation email lists like behavioral segments, location-based segments and demographic segments, using ready-made segmentation templates and dynamic segments.
• Email Personalization: Sending personalized emails to each individual subscriber with dynamic content blocks. (e.g., using their name, personalized recommendation, visuals)
• Smart Popups: You can create smart targeting popups by setting custom triggers and targeting specific audience segments. Choose from ready-made templates to build popups like Welcome, Add-to-Cart, Exit Intent, or even embedded forms
• Advanced Analytics & Reporting: More detailed insights into campaign performance, subscriber behavior, ROI tracking, and conversion rates.

Related Reading: 10 Marketing Automation Workflow Examples to Send Tailored Campaigns.

5. Migration Costs

Switching from one Email Service Provider (ESP) to another isn’t always as simple as flipping a switch. There are often migration costs involved, depending on the complexity of your setup and the platform you’re moving to.

Here’s what typically goes into migration costs:

• Data transfer: Moving your subscriber lists, email templates, automation workflows, and historical campaign data to a new platform can be time-consuming and might require technical help.
• Setup and reconfiguration: You may need to recreate or adjust email flows, segmentation rules, signup forms, or integrations that were tied to your old ESP.
• Training and onboarding: There’s also a learning curve for your team to get familiar with the new platform, especially if it includes new features or a different interface.
• Professional migration services: Some ESPs charge for hands-on migration assistance, while others, like Retainful, offer free migration support.

Related Reading: Difference Between Email Segmentation and Personalization.

Email Marketing Cost for Agencies

Outsourcing your email marketing to an agency or freelancer can significantly impact your email marketing cost, outcome of your email marketing strategy, and ROI.

Freelancer vs. Agency:

• Freelancers: Hourly rates for freelancers can range from $50-$150+ for experienced specialists. Setting up a basic email marketing campaign might cost anywhere from $1,500 to $3,000 based on the time involved.
• Agencies: Monthly cost for agencies can range from $300 for basic management and $10,000+ for advanced services. It may include a percentage of gross revenue for extensive involvement.

This price range for agencies depends on factors like:

• Email Volume & Subscriber Size
• Complexity of your email marketing campaigns
• Agency Expertise & Size
• Reporting & Analytics Depth
• Copywriting & Design

Plan your Email Marketing Campaign’s Budget

You can plan your ecommerce campaigns budget friendly and at the same time without compromising on tools and ROI.

Here is a list of elements to consider before you plan your email marketing campaign’s budget:

• Email design costs
• Copy writing costs
• Email list
• Type of Emails

1. Email Design Costs

The design of your email has a major impact on engagement. Customize your campaign emails that align with your brand’s tone and style.

Here’s what could add to your design cost:

• Hiring a graphic designer – expect to pay between $25 and $150 per hour for an email designer.
• Purchasing premium and responsive template packs.
• Creating dynamic or interactive content (GIFs, carousels, etc.)

If you opt for an ESP like Retainful, you get 100+ ready-made templates to customize using the drag-and-drop email editor.

2. Copy Writing Costs

Compelling email copy turns subscribers into loyal customers. But writing it well takes time and expertise.

Depending on your resources, you can:

• Write in-house (lower cost but time-intensive).
• Hire a freelance copywriter or agency – Hourly rates for Copywriters on Upwork typically range between $19 and $45.
• Use AI writing tools (like ChatGPT) to assist or generate first drafts.

What affects email copywriting costs:

• Number of emails per campaign
• Complexity and personalization level
• A/B testing copy variants

3. Email List

Your email list is one of your most valuable assets. Naturally, Growing your email list will take effort and investment.

Here’s where costs may arise:

• Lead generation tools (e.g., popups, landing pages, quizzes).
• Lead Nurturing Emails and Camgains
• Signup incentives like discount codes, freebies, or gated content.
• List hygiene services to remove invalid or unengaged contacts.

Some ESPs charge based on your subscriber count. So, keeping a clean engaged list is crucial for cost efficiency.

4. Types of Emails you send

Transactional emails often have separate, potentially lower pricing based on volume (eg,order confirmation emails). They are typically simpler in design, focusing on essential information.

Marketing emails (email newsletters) usually fall under tiered pricing based on subscriber count and sending volume. They often require more complex design and content, increasing creation costs.

Moreover, deliverability efforts for marketing emails might also add to expenses.

Therefore, the type and volume of emails you send also influences your overall email marketing campaign cost .

Wrapping Up!!

By now, you would have an idea of how much email marketing costs.

Calculating email marketing costs involves a lot of variables.

But the primary variables affecting the cost of direct email marketing would be:

• Size of your email list
• The tools you choose
• The volume of emails you send.

However, these are not the only factors that affect your email marketing cost. In addition, the industry you’re in can influence how much you need to invest. If email marketing funnel is your only marketing funnel, your email marketing costs will naturally be higher.

Moreover, your overall email marketing strategy matters too. Finally, the quality of your email list will also impact the effectiveness and cost of email marketing campaigns.

To start email marketing without breaking the bank, you can go with Retainful. It’s a low cost email marketing software. It offers all the essential tools you need to run successful email campaigns.

Also Read:

• Klaviyo vs Mailchimp – Which One Offers More Value?
• Mailchimp Pricing – Which Plan is Right For You?
• 8 Best Email Automation Software Comparison

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