What this calculator tells you
Average order value is a compact measure of how much each transaction contributes before costs. It becomes useful when you pair it with order volume and a realistic target rather than treating it as a vanity metric.
When to use it
Use it when testing bundles, minimum order incentives, shipping thresholds, or any change intended to increase revenue per transaction.
Start with your landed cost, real fee rates, and a pessimistic advertising cost. The result is more useful when the assumptions are honest.
Raising AOV with a bundle that carries a much lower margin can improve the headline metric while reducing contribution.
Frequently asked questions
Should discounts be included in revenue?
Use net revenue after discounts. That keeps the result aligned with the money the store actually keeps.
Does a higher AOV always mean more profit?
No. Check the product mix, fulfillment cost, and discount required to get the larger order. A smaller order can be more profitable.
How often should I recalculate AOV?
Review it monthly and after major pricing, bundle, or traffic-source changes. A blended AOV can hide large differences between channels.
Related calculators
Discount Profit Calculator
See how a discount changes gross profit and the order volume needed to break even.
Free Shipping Threshold Calculator
Find the minimum order value that can support free shipping and compare it with your proposed threshold.
Customer Acquisition Cost Calculator
Estimate blended customer acquisition cost and compare it with first-order profit.