Free Shipping Threshold Calculator

Assumes a constant gross margin before seller-paid shipping.

Your numbers

Enter your numbers to see the result.

How Free Shipping Threshold works

Order threshold = shipping cost plus target profit, divided by the gross-margin fraction before shipping. Compare current average-order margin with the seller-paid shipping amount.

A worked example

These sample values illustrate the calculation. Use your own numbers in the calculator for your result.

Example inputs
Average order value
40
Gross margin %
45
Average shipping cost
8
Desired minimum profit
12
Order threshold
$44.44
Profit at current average order
$10.00

Assumptions and limits

Assumes a constant gross margin before seller-paid shipping.

Planning estimate only. This is not legal, tax, payroll or accounting advice.