Calculator for online stores
What order value should unlock free shipping?
A free-shipping threshold does two jobs at once: gently lift the cart value while not losing money on the shipping you absorb. Enter your numbers and the calculator shows your minimum and a sensible threshold customers can actually reach.
Your numbers
Average order value
USD
Revenue ÷ number of orders. The threshold is set around this number so it lifts the cart.
Your shipping cost / order
USD
What delivering one order actually costs you (not what you charge the customer). This is what you absorb with free shipping.
Gross margin
%
The share of revenue left after the cost of goods. Subsidized shipping is paid out of this.
Test a thresholdReset to recommended
Drag and watch whether the threshold lands in a sensible zone. The green band on the scale is the recommended range above your average order.
Recommended free-shipping threshold
$55
+22% above your average order ($45). High enough to lift the cart, still realistic to reach.
$13
minimum, below it shipping loses money
$22
margin at threshold, covers shipping
+$17
profit per order at the threshold
Where your threshold sits
$55
$13min
$45average
$55rec.
A $55 threshold is in the sensible zone: it lifts the average order while the margin covers shipping.
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The threshold is just one signal. The audit walks the whole path to purchase and shows where you lose orders.
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How to get the most from your threshold
The number is only the start. How you communicate the threshold and what you build around it decides whether it actually lifts the cart.
Show how much is left
- "$8 away from free shipping"
- A progress bar in the cart
- Remind them on the product page too
Offer what to add
- Related products up to the threshold
- Cheaper add-ons to "top up"
- Recommendations right in the cart
Keep the threshold visible
- In the header and cart, not hidden
- A clear, simple condition
- No surprises at checkout
An unexpected shipping cost at checkout is among the most common reasons for cart abandonment. A KonvertiQ audit runs your store through 60 conversion signals, including shipping, cart and checkout, and shows exactly where you lose orders.
How we calculate it
No magic, just plain arithmetic you can verify yourself. Every term explained in simple language.
The two tests of a good threshold+
A good threshold must pass two tests at once: lift the cart (sit above your average order) and not lose money (the margin on an order at the threshold covers the shipping you absorb).
minimum threshold = shipping cost ÷ margin
recommended threshold ≈ average order × 1.2 (and never below the minimum)
profit per order at threshold = threshold × margin − shipping cost
recommended threshold ≈ average order × 1.2 (and never below the minimum)
profit per order at threshold = threshold × margin − shipping cost
| Example ($45 order, $5 shipping, 40% margin) | Value |
|---|---|
| Minimum threshold (break-even) | $12.50 |
| Recommended threshold | $55 |
| Profit per order at a $55 threshold | +$17 |
The minimum (break-even) threshold+
If you give free shipping on an order where the margin doesn't cover delivery, you lose money on every such order. The line is shipping cost ÷ margin. At $5 shipping and a 40% margin, that is $12.50. A threshold below that makes no sense.
The recommended threshold and why above the average+
The point of a threshold is to nudge customers to add something. If it were below the average order, most people reach it effortlessly and it lifts nothing. So we set it roughly 15 to 30% above the average order. If that would fall below the minimum, the calculator moves it up to a safe level.
Why not too high+
A threshold that is too high feels unfair and is unreachable for a large share of customers, so they abandon the cart or buy elsewhere. That is why the scale above marks the zone beyond roughly 35% over the average as risky. The ideal is a gentle stretch, not a jump most people can't make.
How accurate is this calculator+
It is an estimate and a recommended range, not a precise optimum. The true best threshold depends on how your orders are distributed, your range and customer behavior. If your prices vary a lot, use your median order rather than the average, and feel free to A/B test two thresholds.
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Threshold set. Now complete more purchases.
A KonvertiQ audit runs your store through 60 conversion signals and gives you a concrete action plan for removing the obstacles on the path to purchase.
Get an audit with an action plan →KonvertiQ, practical tools for growing online stores. Results are an approximate estimate.