Shopify · United States
Free Shipping Threshold Calculator
Enter your average order value, average shipping cost, gross margin, and target contribution. The calculator suggests a free-shipping threshold that keeps orders profitable after absorbing shipping.
Marketplace fees change. Enter your current fee rate for the most accurate estimate.
Inputs
Industry studies vary — start conservative.
Result
- Break-even threshold (raw)
- $26.36
- Suggested free-shipping minimum
- $48.30
- Current contribution / order
- $14.60
- Projected contribution at new AOV
- $18.07
Threshold rounds up to the nearest $5 in most stores for cleaner UX.
Test the threshold for 30 days and monitor AOV and shipping cost per order.
Method
Minimum threshold = (Shipping cost + Target contribution) ÷ Gross margin %. AOV lift factor is applied when you enter a realistic uplift estimate.
Frequently asked questions
Should I offer free shipping site-wide?
Only if your gross margin fully absorbs shipping. Otherwise a threshold protects profit while still boosting AOV.
How much AOV lift is realistic?
Reported lifts vary widely by category. Start with a 10–15% estimate and re-measure after 30 days.
Method and guidance reviewed by the AIFlowBiz Editorial Team.
Related tools
Related reading
Educational tool. Not financial, tax, or legal advice. Confirm current marketplace fees and tax rates from official sources.