Start with one workflow, then move only when the result supports the next decision.
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
You're likely absorbing shipping on orders that would happen anyway — consider reducing shipping costs first.
Marginal Economics$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
The threshold may change order volume. Confirm inventory timing before you promote it.
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