What Should My Free Shipping Threshold Be?
Enter your AOV, shipping cost, and margin. Get the optimal threshold instantly — the number that maximizes profit without killing conversions.
Order Metrics
Shipping & Margin
Currency
$75
50% above your AOV of $50
Net Benefit by Threshold
Minimum Viable Threshold
$20
Below this, you lose money on every free shipping order
Why This Threshold
• $75 is 50% above your AOV — the sweet spot where enough customers qualify to boost revenue, but not so many that you lose on shipping.
• A threshold below $20 would cost you money — the margin on qualifying orders wouldn't cover the shipping cost.
Projected Monthly Benefit
$-130
Next decision: reorder planning
Current modeled impact: $-130.00
Once you push bigger baskets, confirm your inventory timing still works and you will not stock out.
How it works
This calculator tests 5 threshold scenarios (from your AOV up to 140% of AOV) and finds the one with the highest net benefit. It accounts for customers adding items to qualify for free shipping (assumed 20% of orders below threshold).
The minimum viable threshold shows where you'd start losing money — set your threshold below this and free shipping eats your margin on every qualifying order.
Next Decision
Keep moving through the operating model instead of treating this tool as a one-off calculation.
Plan Reorders