Calculator
Free Shipping Threshold Calculator
Calculate a free shipping threshold that covers shipping cost and protects margin.
How to use it
Enter average order value.
Enter gross margin.
Enter shipping cost per order.
Enter target extra profit.
Review the suggested free shipping threshold.
FAQ
How do you calculate a free shipping threshold?
Estimate the extra order value needed to cover shipping cost at your gross margin, then add it to current AOV.
Should free shipping threshold be above AOV?
Usually yes. A threshold above AOV can encourage larger baskets while helping cover shipping cost.
Can free shipping hurt profit?
Yes, if the threshold is too low or shipping cost is not covered by additional gross profit.
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