# Free shipping threshold calculator for online shops

Average order value, shipping cost and margin in; a free-shipping threshold that pays for itself out.

Source: https://webkodingtheme.com/tools/free-shipping-threshold-calculator/

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Free tool

# Free shipping threshold calculator

Where to set “free shipping over…” so that the extra spending it encourages covers the shipping you give away.

Current average order value (USD) Average shipping cost per order (USD) Gross margin (%) Currency USD EUR GBP CAD AUD TRY INR AED SAR
Suggested threshold US$57.00
Extra spend needed per order US$12.00
Increase on current AOV 26.7%

## How it is calculated

Extra spend needed = shipping cost ÷ gross margin — the additional sale whose profit pays for the shipping.
Suggested threshold = current average order value + extra spend needed, rounded up.
This is a starting point, not a law: test it, and watch whether average order value actually rises to meet it.

## Questions

### Why not set the threshold at my average order value?

Then most orders already qualify and you pay shipping on them without getting anything back. The threshold works when it sits just above what people usually spend.

### Is free shipping worth it at all?

Unexpected shipping costs are the reason shoppers most often give for abandoning a cart. A threshold lets you remove that objection while making customers earn it.

### What if the threshold is far above my AOV?

That means your margin is too thin to absorb shipping easily. Consider a smaller threshold with flat-rate shipping below it, or building part of the shipping into prices.

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