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A free shipping threshold is the order value a customer must reach to get free shipping.
A practical formula is:
Free shipping threshold = AOV + (shipping cost + target extra profit) / gross margin
For example, if AOV is $58, gross margin is 42%, shipping cost is $7.50, and target extra profit is $5, the suggested threshold is $87.76.
Use the Free Shipping Threshold Calculator at /tools/free-shipping-threshold-calculator, then compare the result with the Shipping Cost Calculator, AOV Calculator, Ecommerce Profit Calculator, and Product Pricing Calculator.
How to calculate a free shipping threshold
Learn how to set a free shipping threshold that encourages larger orders without destroying margin.
A practical formula is:
Free shipping threshold = AOV + (shipping cost + target extra profit) / gross margin
For example, if AOV is $58, gross margin is 42%, shipping cost is $7.50, and target extra profit is $5, the suggested threshold is $87.76.
Use the Free Shipping Threshold Calculator at /tools/free-shipping-threshold-calculator, then compare the result with the Shipping Cost Calculator, AOV Calculator, Ecommerce Profit Calculator, and Product Pricing Calculator.
Free Shipping
Shipping Cost
AOV
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Useful tools
Free Shipping Threshold Calculator
Calculate a free shipping threshold that covers shipping cost and protects margin.
Product Pricing Calculator
Calculate a product selling price from costs and target margin.
Ecommerce Profit Calculator
Calculate profit per order after product cost, shipping, fees, and ad cost.
Shipping Cost Calculator
Use this free shipping cost calculator to estimate carrier cost, packaging cost, and total shipping cost before setting product prices.
Markup Calculator
Use this free markup calculator to compare cost, selling price, markup, profit, and margin before publishing a product price.
Profit Margin Calculator
Calculate profit, cost, and margin for ecommerce, Shopify, Amazon, Etsy, or independent store products.