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How to calculate average order value

2026-05-20 11:48 · Paid Marketing

Learn the AOV formula, see a simple ecommerce example, and understand why average order value matters for marketing decisions.

Average order value, usually shortened to AOV, measures the average revenue produced by each order.

The AOV formula is:

AOV = total revenue / number of orders

For example, if an ecommerce store makes $18,000 from 300 orders, the AOV is $60.00. If a paid campaign produces $4,800 from 80 orders, campaign AOV is also $60.00.

The key is to keep revenue and orders from the same reporting period and source. Do not mix total store revenue with orders from one channel unless that is the comparison you intend to make.

AOV matters because it affects how much revenue each conversion produces. A campaign with the same conversion rate can become more profitable if average order value increases through bundles, upsells, free shipping thresholds, or product mix changes.

Use the AOV Calculator at /tools/aov-calculator for quick checks. Then compare AOV with conversion rate, ROAS, LTV, CAC, and profit margin to understand whether order value supports your acquisition cost.