Explore TownFavorite

Search TownFavorite

Find city guides, articles and planning tools. Contact TownFavorite to confirm campaign availability.

Explore TownFavorite

Free ROI Tool

Calculate Your Direct Mail ROI

Enter your average ticket value and close rate to estimate your return from a single TownFavorite postcard campaign.

Free, No Sign-Up RequiredBased on Your InputsInstant Estimate

Select Your Mailing Product

Which product is right for you?

Community Reach (5,000 addresses · $600)

Best for local businesses building brand recognition across a full neighborhood or zip code.

Maximum Reach (10,000 addresses · $850)

Best for businesses that need maximum market saturation at the lowest cost per address -- insurance, retail, franchise, and multi-location services.

Elite Targeted (2,500 addresses · $900)

Consider for high-ticket services such as roofing, remodeling, med spa and luxury real estate when demographic selection fits your audience. Compare campaign costs with your actual contribution profit per customer.

Use-case guidance, not an outcome guarantee. Press Escape to close.

Minimum 1. Decimals are accepted. Required for a complete estimate.
From 1 to 100. Decimals are accepted. Required for a complete estimate.
From 0.1 to 10. Use increments of 0.1. Required for a complete estimate.
Addresses Reached
5,000
Cost Per Address
$0.120
Est. Responses
50

How we calculate this

Enter your own response rate, close rate and average ticket value to model customers and revenue. The displayed revenue-based return is (estimated revenue minus slot cost) divided by slot cost, multiplied by 100. It excludes other campaign costs and the cost of serving customers, so it is not profit-based ROI. Inputs are hypothetical assumptions, not industry benchmarks or a performance forecast.

Planning estimate based on your inputs and reference product pricing, not observed campaign results or a live quote. The displayed return is revenue-based and excludes other campaign and operating costs; it is not net profit. Confirm pricing and campaign scope with TownFavorite. Online checkout is currently closed.

From estimate to a useful plan

Make sense of your direct mail estimate

A useful estimate starts with numbers you can explain. Use this guide to choose your inputs, understand the result and decide what to measure if you run a campaign.

Choose inputs you can explain

Input 1

Average ticket value

Use the revenue from a typical sale you could attribute to the mailer. A recent average from your own invoices is more useful than your largest-ever order.

Keep the time period clear. Start with the initial purchase; evaluate repeat purchases separately instead of treating lifetime value as immediate revenue.

Input 2

Response rate

This is the share of mailed addresses you assume will respond. Decide what a response means for your campaign: an inquiry, a phone call or another consistently recorded action.

The starting value of 1% is an editable assumption, not a benchmark. A delivered piece, a QR scan and a completed sale are different events.

Input 3

Close rate

This is the share of responses you assume will become new customers. For example, a 20% close rate means one customer for every five responses in the model.

Use responses and sales from the same group and measurement period. Do not assume every person who asks a question will buy.

Try a lower and a higher response assumption while keeping the other inputs fixed. Then change the ticket value or close rate separately. This helps you see which assumptions your plan depends on, without presenting any scenario as an expected outcome.

Hypothetical example · not campaign results

Follow one estimate from inputs to results

Select Community Reach with a $100 average ticket, a 20% close rate and a 1% response assumption. The current reference slot is $600 for 5,000 addresses. These inputs illustrate the arithmetic; they are not a prediction.

Estimated responses
50
5,000 addresses × 1%
Estimated new customers
10
50 responses × 20%
Estimated revenue
$1,000
10 customers × $100
Revenue-based return
67%
($1,000 − $600) ÷ $600 × 100

A positive estimate is not the same as profit

Suppose, separately, that your contribution margin is 40% after the variable cost of serving each customer. That leaves $40 per $100 sale. In this example, 10 customers contribute $400. Subtract the $600 slot and the contribution after slot cost is -$200, before any other campaign expenses or fixed overhead. The margin is illustrative; the calculator does not collect or apply it.

How to read Break-Even Responses

This result is a count of responses, not customers. It asks how many responses would cover the reference slot cost when each response is assigned the expected revenue from your ticket value and close rate. It does not calculate profit break-even.

In the example, each response represents $100 × 20%, or $20, of modeled revenue. Covering a $600 slot therefore requires 30 responses in that separate planning model. Actual conversion is uncertain.

The formula and its limits

Slot cost ÷ (ticket value × close rate as a fraction), rounded up to a whole response.

Responses and new customers are rounded to whole numbers before revenue and return are calculated. Break-Even Responses uses your unrounded expected revenue per response, then rounds up. These separate models can show a positive return before the stated break-even response count; neither is a guaranteed outcome.

Decide what you will measure before you mail

  1. Define the response before the mailing

    Choose a response definition and review period that fit your sales cycle. Keep scans, inquiries and completed purchases in separate columns so you can see where people progress.

  2. Choose a way to connect activity to the campaign

    Where available, use a campaign-specific link, phone number or offer code. Record how customers found you. Allow for the cost of any tracking service you choose; no method captures every response.

  3. Record attributable sales and the complete cost

    Track the sales you can connect to the mailer and the variable cost of fulfilling them. Add campaign expenses such as design or tracking. Count each discount once, rather than reducing revenue and adding the same discount again as an expense.

  4. Compare the assumptions with what happened

    At the end of your chosen review period, compare recorded responses, customers and contribution with your plan. Keep uncertain attribution separate and use what you learn to inform the next decision.

Questions about your estimate

What response rate should I enter if this is my first mailing?

There is no single response rate that predicts your first campaign. Use several clearly labeled assumptions and see how the result changes. The 1% starting input is not an industry average or a TownFavorite performance forecast.

Does a positive revenue-based return mean the campaign is profitable?

No. The calculator subtracts the reference slot cost from estimated revenue. It does not subtract the cost of serving customers or other campaign expenses. A profit-based evaluation needs those costs and your contribution margin.

Why does changing response rate not change Break-Even Responses?

Break-Even Responses is the separate threshold calculated from slot cost, ticket value and close rate. Changing your assumed response rate changes modeled activity, but not that threshold when the other three values stay the same.

Does the estimate include design, discounts and tracking costs?

The calculator includes the selected product’s reference slot cost only. Include any additional campaign expenses in your own budget, using confirmed amounts. Apply discounts consistently so the same reduction is not counted twice.

Can I count QR scans as new customers?

A scan is an interaction, not proof of a new customer or a sale. Keep scan counts separate from inquiries and purchases, and avoid treating repeated interactions as separate acquired customers. Attribute sales using the records you can substantiate.

Are the product prices and address counts a confirmed campaign quote?

They are reference product information for planning. Confirm your selected product, mailing scope, availability, schedule and any additional charges with TownFavorite before making a commitment. The calculator does not reserve a campaign.

Bring your assumptions to the conversation

Share your target area, offer and the numbers you used. TownFavorite can discuss campaign scope and confirm current pricing and availability. For a deeper look at costs, contribution and attribution, read the complete direct mail ROI guide.

Get the Free Direct Mail ROI Guide

Learn how Birmingham businesses estimate their potential ROI with shared postcard campaigns.

Read Guide

Read the guide online. No email signup is required. Privacy Policy