Free Shipping Threshold Calculator
Find the order amount to set for free shipping: high enough that shoppers add an item to reach it, and enough to pay for the shipping you take on.
Free · No sign-up · Nothing you type leaves your browser
The formula
How the calculator works
The calculator starts from your average order value and checks the amount from two sides.
1. The usual range. Most stores set free shipping 15% to 30% above their average order. Lower, and you pay for shipping on orders that would have happened anyway. Higher, and the gap is too big for most shoppers to bother.
2. What pays for the shipping. When a shopper adds products to reach the threshold, you keep your margin on what they add. That margin has to cover the shipping you now pay:
Break-even threshold = AOV + (shipping cost ÷ margin)
The suggested threshold is the break-even amount, kept within the 15% to 30% range and rounded up to a round number (the next $5).
Worked example: average order $42, shipping $5 an order, margin 50%.
- The usual range is $48.30 to $54.60.
- Break-even: $42 + ($5 ÷ 0.5) = $52.
- $52 is inside the range, so it is rounded up to $55.
- A shopper at the average order adds $13 to get free shipping. You keep 50% of that, $6.50, which covers the $5 of shipping and leaves $1.50.
If the break-even amount is above the range, the calculator suggests the top of the range and tells you how much each order would still cost you. Then you can lower the shipping cost, offer free shipping on some products only, or accept a small cost for the bigger orders.
Your numbers
Where to find your numbers
Average order value
WooCommerce: Analytics, then Orders. Shopify: Analytics. Or work it out with the average order value calculator.
Shipping cost
What you pay the carrier for a typical order, not what you charge the shopper. Your carrier invoices or shipping app show it.
Margin
What you keep from a sale after the product’s cost, as a percentage. If a $20 product costs you $12, your margin is 40%.
Next steps
Once the threshold is set
Show how much is left
A bar in the cart that says “$13 away from free shipping” does the sum for the shopper, where they look.
Have something to add
Make sure you sell products at about the size of the gap, from the gap to twice the gap: socks, refills, a candle, a card.
Suggest it in the cart
Show one or two of those products right in the cart, so reaching the threshold takes one click.
Give it a few weeks
Change one thing at a time and compare a few weeks before and after: average order value, orders, and what you paid for shipping.
FAQ
Questions
How do I choose a free shipping threshold?
Start 15% to 30% above your average order value, then check that the margin on what shoppers add covers the shipping you pay. This calculator does both from three numbers.
Does free shipping increase average order value?
It can, when the threshold sits just above your average order and shoppers can see how close they are. If it is set below your average, it mostly gives away shipping on orders you already had.
What if the threshold doesn’t pay for the shipping?
Lower your shipping cost (another carrier, smaller boxes), offer free shipping only in your own country or on some products, or accept a small cost per order for the bigger orders and the shoppers it brings back.
Should I offer free shipping on every order?
Only if your prices already include the shipping. Free shipping on every order removes the reason to add one more item, which is what raises the average order.
What about orders that were already above the threshold?
They get free shipping too, with nothing added, so that shipping is a cost. Look at how many of your orders are already above the amount: the more there are, the higher the threshold may need to be.
Guides on this topic
Another free tool
Raise your average order
Bundles, a sliding cart with upsells and a free shipping bar, and popups for WooCommerce and Shopify. Each one has a free version.
- Free versions
- Email support