Free shipping threshold calculator
Before you promise free shipping over a set amount, check that the order margin covers delivery and still leaves you a profit.
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Processing and privacy: The result is calculated inside your browser and your data is not sent to any server.
How to use it
- Enter your shipping cost per order, gross margin on products, target profit per order and current average order value.
- The result appears straight away and updates as you edit.
- Copy the result, or copy a link that keeps the same values to share it.
How it is calculated
Free shipping threshold = (shipping cost + target profit per order) ÷ gross margin. Gap = threshold − current average order value.
Example
Inputs: Your shipping cost per order = 25, Gross margin on products = 40 %, Target profit per order = 20, Current average order value = 90. Result: Free shipping threshold: 112.50; Difference from current average order: 22.50; Difference as % of current average order: 25%.
Limits and caveats
- It assumes one margin for all products; if margins differ, use a sales-weighted average.
- It does not predict how the offer changes order volume, only the profit of a single order.
Questions about this tool
What does a negative gap mean?
Your current average order is already above the threshold, so most orders can ship free without dropping below your target profit.
Why divide by the margin?
Each unit of sales only leaves you the margin share, so you need sales larger than the shipping cost to cover it.
Should I set the threshold higher?
Many stores set it a little above average order value to encourage one more item, as long as it is not below this figure.