Direct Mail ROAS Calculator
Calculate your expected return on ad spend for direct mail campaigns. Input your assumptions and see a complete funnel sensitivity analysis with projected ROI ranges.
Input Assumptions
Adjust these values to match your campaign parameters
Monthly mail volume you plan to send
Cost per mail piece including printing & postage
% of leads that are qualified or workable
% of net leads that become contracts
Avg. profit per closed deal (assignment fee, flip profit, etc.)
% of contracts that close (1 - fallout rate)
Results Summary
Based on a 0.40% baseline response rate
$15,750
4.8x
376% ROI
$75,000
3.0 closed deals
$59,250
Expected Funnel (Baseline)
Funnel Sensitivity Analysis
See how different response rates affect your results. The highlighted row shows your expected baseline.
Gross Leads
Raw responses before qualification
| Gross Leads | Response Rate | Cost per Lead |
|---|---|---|
| 50 | 0.20% | $315 |
| 75 | 0.30% | $210 |
| 100 | 0.40% | $158 |
| 125 | 0.50% | $126 |
| 150 | 0.60% | $105 |
Net Leads
Qualified, workable leads
| Net Leads | Net Response Rate | Cost per Net Lead |
|---|---|---|
| 25.0 | 0.10% | $630 |
| 37.5 | 0.15% | $420 |
| 50.0 | 0.20% | $315 |
| 62.5 | 0.25% | $252 |
| 75.0 | 0.30% | $210 |
Contracts
Deals under contract
| Contracts | Avg. Cost / Contract | Gross Contract Value |
|---|---|---|
| 2 | $7,875 | $50,000 |
| 3 | $5,250 | $75,000 |
| 4 | $3,938 | $100,000 |
| 5 | $3,150 | $125,000 |
| 6 | $2,625 | $150,000 |
Closed Deals & ROAS
Final results after fallout
| Closed | Net Closed Revenue | Return on Spend (ROAS) |
|---|---|---|
| 1.50 | $37,500 | 2.4x |
| 2.25 | $56,250 | 3.6x |
| 3.00 | $75,000 | 4.8x |
| 3.75 | $93,750 | 6.0x |
| 4.50 | $112,500 | 7.1x |
Close Rate Sensitivity
How your ROAS changes based on contract-to-close conversion rate
| Net Leads | Contracts / Net Leads | ROAS |
|---|---|---|
| 50 | 4.0% | 2.4x |
| 50 | 6.0% | 3.6x |
| 50 | 8.0% | 4.8x |
| 50 | 10.0% | 6.0x |
| 50 | 12.0% | 7.1x |
How to Use This Calculator
Follow these steps to get accurate ROAS projections for your direct mail campaigns.
Enter Your Campaign Details
Input your planned mail volume, cost per piece, and expected conversion rates based on your market and experience.
Review Sensitivity Analysis
See how different response rates affect your results with our funnel tables showing best-case, expected, and worst-case scenarios.
Understand Your ROAS
Get a clear picture of your expected return on ad spend and identify which metrics have the biggest impact on profitability.
Optimize Your Campaign
Use the insights to adjust your strategy, improve list quality, or refine your follow-up process for better returns.
Frequently Asked Questions
Common questions about direct mail ROAS and how to improve your campaign performance.
What is a good ROAS for direct mail?
A good ROAS for direct mail real estate campaigns is 3x or higher, meaning you earn $3 for every $1 spent. Most successful investors target 3-5x ROAS. Below 2x may indicate issues with list quality, mail piece design, or follow-up process. Top performers often achieve 5x or higher ROAS through optimized campaigns and consistent mailing.
How do you calculate direct mail ROI?
Direct mail ROI = (Net Revenue - Total Cost) / Total Cost × 100. For example, if you spend $15,000 on mail and close deals worth $45,000 in profit, your ROI is 200% ((45,000-15,000)/15,000 × 100). ROAS is similar but expressed as a multiplier: $45,000 / $15,000 = 3x ROAS.
What response rate should I expect from direct mail?
Typical direct mail response rates for real estate range from 0.3% to 1%, with 0.4-0.6% being average for well-targeted lists. Response rate depends on list quality, mail piece design, market conditions, and timing. Absentee owner lists typically perform better than general owner lists. Consistent mailing over 3-6 months improves response rates.
How can I improve my direct mail ROAS?
Improve ROAS by: (1) Using high-quality, targeted lists like absentee owners, pre-foreclosure, or high-equity properties; (2) A/B testing mail piece designs and messaging; (3) Following up with leads within 24-48 hours; (4) Mailing consistently (5,000+ pieces/month); (5) Tracking response sources to identify best-performing lists and campaigns.
How many mail pieces should I send per month?
Most successful real estate investors send 10,000-25,000 mail pieces per month for consistent deal flow. Starting with 5,000 pieces/month is reasonable for testing, but scaling to 15,000+ pieces monthly typically yields better results due to increased brand recognition and touchpoints. Consistency matters more than volume—mailing monthly is better than sporadic large sends.
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Understanding Direct Mail ROAS for Real Estate Investors
Return on Ad Spend (ROAS) is a critical metric for real estate investors using direct mail to find motivated sellers. Unlike traditional marketing metrics, ROAS for direct mail campaigns takes into account the entire funnel from mail piece to closed deal.
The key to maximizing your direct mail ROAS is understanding each stage of the funnel: response rate, lead qualification, contract rate, and close rate. Our calculator helps you visualize how changes at each stage impact your bottom line.
Why Response Rate Matters Less Than You Think
Many investors focus solely on response rate, but the real leverage is in your conversion rates. A campaign with a 0.3% response rate but 10% contract rate can outperform a 0.6% response rate with 5% contracts. Use the sensitivity tables above to see how these metrics interact.
The Power of Consistent Mailing
Direct mail campaigns compound over time. First-time mailers typically see 2-3x ROAS, while investors who mail consistently for 6+ months often achieve 4-6x ROAS due to brand recognition, timing, and optimized targeting.