Average Order Value Calculator
Average order value from revenue and orders, the orders you need to reach a revenue target, the revenue a target order value would bring, and a free-shipping threshold set as your order value times a factor you pick.
Result…
How it's calculated
Average order value (AOV) = revenue ÷ number of orders Orders for a target = target revenue ÷ AOV, rounded up Revenue at a target AOV = target AOV × number of orders Free-shipping threshold = AOV × factor (a rule of thumb) Items per order = items sold ÷ orders
Average order value (AOV) is the revenue a shop takes per order on average, a key number for online stores, restaurants and any business that sells in baskets. Raising it, for example with bundles, add-ons or a free-shipping threshold, grows revenue without needing more customers. This calculator divides your revenue by your orders, then answers two planning questions: how many orders you need to reach a revenue target at today's AOV, and what a higher AOV would bring with the same number of orders. It also suggests a free-shipping threshold as your AOV times a factor you choose; setting it a little above the current AOV is a rule of thumb, so treat the result as a figure to test, not an answer.
Your numbers, step by step
About the Average Order Value calculator
This average order value calculator divides your revenue by your number of orders to give the average amount a customer spends per order, or AOV. It then answers the planning questions that follow: how many orders you need to reach a revenue target at today's AOV, and how much revenue a higher order value would bring with the same number of orders. Add the items sold to see items per order and the average item price. It also suggests a free-shipping threshold as your AOV times a factor you pick; setting a threshold a little above the current order value is a rule of thumb, so the figure is a starting point to test, not an answer. Online shops, restaurants and any business that sells in baskets can use it, and every step is shown. To see how many visitors become orders, use the conversion rate calculator.
How to use it
- Enter the “Revenue” for a period and the “Number of orders” in the same period.
- Optionally add “Items sold (optional)” for items per order and the average item price.
- Enter a “Target revenue (optional)” or a “Target order value (optional)”, or 0 to leave either out.
- Choose a “Free-shipping factor” to set a threshold as a multiple of your AOV.
Worked example
A shop took 48,000 from 1,200 orders and 3,000 items. Its AOV is 48,000 ÷ 1,200 = 40, with 2.5 items per order at an average of 16 each. To reach 60,000 at an AOV of 40 it needs 1,500 orders, 300 more. Raising the AOV to 45 with the same 1,200 orders would bring 54,000. With a factor of 1.25, the rule-of-thumb free-shipping threshold is 40 × 1.25 = 50.
Updated
Questions people ask
How do I calculate average order value?
Divide total revenue by the number of orders in the same period: AOV = revenue ÷ orders. 48,000 from 1,200 orders is an AOV of 40.
Should average order value include tax and shipping?
There is no single rule; some businesses include them and others do not. What matters is using the same definition every time, so that one month's AOV can be compared with the next.
How do I pick a free-shipping threshold?
A common rule of thumb is to set it a little above your current AOV, so customers add one more item to reach it. Test the factor on your own orders, and check that the extra margin covers the shipping you give away.
What is a common mistake with average order value?
Reading it as a typical order. AOV is a mean, so a few very large orders can pull it well above what most customers spend; look at the spread of order sizes as well.
Does a higher AOV always mean more profit?
No. Discounts, free shipping and bundles used to raise AOV can cut the margin on each order. Check profit per order as well, and for pricing decisions ask an accountant or business adviser.