How Much Does Email Marketing Cost for a Small Business?

What email marketing really costs a small business: software pricing models, hidden costs, time, and a simple way to budget — plus how to start for free.

In short: Most small businesses can start for $0 on a free plan and typically spend somewhere between about $15 and $100 a month once their list grows into the low thousands. The bigger costs are often hidden: time, paid add-ons, and how prices jump as your contact count grows. Budget by your contact count in a year, not today.

"How much does email marketing cost?" has two answers: what you pay for software, and what it costs you in time. Both are usually small compared with what email brings back — but the way platforms price can surprise you as you grow. Here's how to understand and budget for it.

The three ways platforms charge

1. By number of contacts (most common). You pay a monthly price based on how many people are on your list, usually with a generous sending allowance. The price goes up in steps as your list grows.

2. By number of emails sent. You pay for volume — useful if you have a large list but email it rarely.

3. Flat tiers with limits. Each plan includes a set number of contacts, emails per month and features. You upgrade when you hit a limit or need a feature.

Many platforms combine these: a contact-based price with monthly sending limits and features unlocked on higher plans.

Typical price ranges

Prices change often, so always check current pricing pages, but as a rough guide for small businesses in the US and Canada:

Free plans: usually a few hundred to a couple of thousand contacts, with limited sends and the platform's branding in your emails.
Up to roughly 2,500 contacts: commonly in the range of $15–$45 a month.
Around 10,000 contacts: commonly $50–$150 a month, depending on features.
25,000+ contacts: often $150 a month and up.

The same list can cost two or three times more on one platform than another once you add the features you need, so compare like for like.

The costs people forget

Counting unsubscribed contacts. Some platforms bill for every contact stored, including people who unsubscribed. Check how "contacts" are counted.
Features on higher tiers. Automations, A/B testing, multiple users and removing the platform's branding are often locked behind more expensive plans.
Extra users. Team seats can add a monthly charge per person.
Add-ons. Dedicated IP addresses, extra sending, SMS and premium templates are often sold separately.
Price jumps at thresholds. Going from 2,499 to 2,501 contacts can move you into a much more expensive tier.
Your time. Writing, designing and checking each email takes an hour or more until you have a routine — often the largest real cost.

How to budget

Count your contacts today and estimate where you'll be in 12 months. Plan for that number, not today's.
List the features you need now — usually a sign-up form, a welcome automation and basic reports — and the ones you'll want within a year (more automations, A/B tests, segments).
Price that setup on two or three platforms at today's size and at twice the size.
Add your time. If one newsletter takes two hours, a weekly schedule is about eight hours a month. Tools that write or template emails for you reduce this cost directly.

Is it worth it?

Email is one of the cheapest ways to reach people who already know you. You don't pay per view or per click as you do with ads, and the audience is yours — no algorithm decides who sees your message. For most small businesses, a single extra booking, order or visitor a month covers the cost of a starter plan.

Measure it simply: track sales, bookings or enquiries that come from email links each month and compare them with what you spend. Your platform's click reports and a discount code that's only used in email make this easy.

How to keep costs low

Start on a free plan and upgrade only when you hit a limit that matters.
Clean your list a few times a year — removing contacts who never open or click lowers contact-based bills and improves deliverability (how to clean your list).
Pay annually once you're sure, if the platform offers a discount.
Use automations to do repeat work (welcome emails, reminders) once instead of every week.
Use templates and AI drafting to cut writing time.

Questions to ask before you choose

How are contacts counted, and are unsubscribed people billed?
What happens when I go over a limit — is sending blocked, or am I charged automatically?
Which features are included on the plan I'd actually use?
Can I export my contacts at any time?
Is there a free plan or trial, and does it need a card?

See how to choose a Mailchimp alternative for a full comparison checklist.

In Reepio

Reepio has a free plan that doesn't need a card, so you can build your list and send real campaigns before paying anything. Paid plans add contacts, sending volume, team members and features like A/B testing, with clear limits shown on your Billing page — and you can change or cancel at any time. See current prices on the pricing section.

Frequently asked questions

Can I do email marketing for free?

Yes. Many platforms, including Reepio, have free plans for small lists. They usually limit contacts and monthly sends and add the platform’s branding to your emails.

Why do email marketing prices go up so quickly?

Most platforms charge by the number of contacts, in steps. Growing past a threshold moves you into a higher tier, and features like automations or A/B testing are often only on more expensive plans.

How much time does email marketing take each week?

Expect one to three hours a week for a regular newsletter once you have a routine. Templates, automations and AI drafting reduce this considerably.

How do I know if email marketing is worth the cost?

Track sales, bookings or enquiries that come from email links each month and compare them with your software cost and time. An email-only discount code makes this easy to measure.