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What order value earns free shipping?

Enter your numbers below. Get the answer first, then Koala's next move.

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Numbers to enter
Start with the three numbers below. Koala keeps a loss-making average order visible instead of hiding it, and only calculates a free-shipping threshold when the baseline product economics are positive.

Your typical order today. Finance term: AOV.

Use the direct product/supplier cost for the average basket.

The average shipping/delivery cost the business absorbs when the customer gets free shipping.

Koala's Calculated Result
A free-shipping trigger tied to the product economics you entered — not a generic percentage rule.

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The detailed explanation will appear here once the calculator has a result.

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Definition and method

What this calculator answers

Estimate the order threshold that preserves the gross-profit dollars in your current average order while absorbing the shipping cost you enter.

Basic threshold — preserve today’s gross-profit dollars

First calculate the current product gross-margin rate: (average order value − product cost) ÷ average order value. The Basic threshold solves threshold × that margin rate − shipping cost = the gross-profit dollars in today’s average order. This assumes the product-cost percentage stays roughly the same as basket value changes.

Worked example: your figures

The interactive result above is the worked example. Change any input and the same deterministic engine recomputes the answer; this page does not insert a generic example business or silently treat example values as a benchmark.

  • No market benchmark or outcome is silently inserted by this page.

What should I check next?

Frequently asked questions

What is a free-shipping threshold?

A free-shipping threshold is the minimum order value at which a store waives delivery cost. Orders below the threshold pay for delivery; orders at or above the threshold get it free.

Free Shipping Threshold

How is the threshold calculated?

Basic mode preserves the gross-profit dollars in the current average order while absorbing the entered shipping cost, assuming the product-cost percentage stays roughly stable as basket value changes. If you add your own minimum post-shipping margin, MarginKoala also solves that constraint and uses whichever threshold is higher.

Free Shipping Threshold

Should I round the threshold up or down?

MarginKoala keeps the exact calculated threshold and rounds the displayed operating trigger up to the next 5 units of local currency. Rounding up avoids publishing a trigger below the calculated threshold. The 5-unit step is only a display convention, not a universal pricing rule.

Free Shipping Threshold

What if my average order is below the threshold?

Use the calculator result for the inputs entered and keep any market-response or operating recommendation separate from the deterministic calculation. Support that additional assumption with the business’s own evidence or an explicitly labelled scenario.

Free Shipping Threshold

Educational use, not financial advice. Numbers are estimates for planning; consult a qualified professional before acting on them.