A free shipping threshold is the order value at which shipping becomes free, set so the extra margin from larger orders covers the shipping cost.
What is the Free Shipping Threshold Calculator?
This free shipping threshold calculator suggests the order value at which to offer free shipping so it lifts average order value without costing you money. A threshold set just above your AOV is one of the simplest, most effective ways to grow order size.
How this calculator works
Enter your current average order value, the shipping cost you pay per order, and your gross margin. The tool works out how much extra order value is needed for the added margin to cover shipping, then adds that to your AOV to suggest a threshold.
How to read your result
The headline is your suggested free-shipping threshold. The rows show your current AOV, your margin per order, your shipping cost, and the extra order value needed to cover it. Pair the threshold with a progress bar in the cart so shoppers know how close they are.
Work with a Shopify expert
If you want a smart free-shipping bar and upsells in the cart, that is quick for us to build. Talk to a Shopify expert.
This free free shipping threshold calculator gives a fast, data-informed estimate; for wider industry context on free shipping threshold, see Baymard Institute checkout research.
Threshold = AOV + (shipping cost / gross margin %)Factors
Average order value
Your threshold should sit a little above current AOV to encourage one more item.
Shipping cost
The cost you absorb determines how much extra margin you need to cover it.
Gross margin
Higher margins cover shipping with less added order value, lowering the threshold.
Cart experience
A visible progress bar toward free shipping strongly increases its effect.
- Free and instant - no sign-up required.
- Built for Shopify and ecommerce stores.
- Use real numbers to plan with confidence.
- Turn the result into action with CartCoders.
Related calculators
Planning a project usually means weighing more than one number. These tools cover the decisions next to this one:
- Average Order Value Calculator — measure and grow AOV
- Profit Margin Calculator — profit per order
- Return Cost Calculator — cost of returns
Frequently asked questions
Where should I set my free shipping threshold?
Slightly above your average order value, so most shoppers only need to add one more item to qualify. This calculator suggests a level where the extra margin covers your shipping cost.
Does free shipping actually increase sales?
Used well, yes. A threshold raises average order value and reduces cart abandonment, provided it is set so the larger orders still leave you profitable.
Should the threshold cover my full shipping cost?
Ideally the added margin from the larger order covers the shipping you absorb. This tool calculates the extra order value needed so the offer stays profit-neutral or better.