Free Shipping Calculator (Free Shipping Threshold)
From which order value does free shipping pay off? Calculate the right threshold based on cart value, margin, and your shipping costs.
Recommended threshold
€60.00
Cart value + 15%, rounded up
Profit per order at the threshold
€16.10
after shipping costs
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Claim 50% off nowHow to use the free shipping calculator
- Enter your current average order value under Average cart value (€) – you can find this figure in your store platform’s analytics.
- Enter your average retail margin under Margin (%). If you don’t know it, work it out first with our margin calculator.
- Under Your shipping cost per parcel (€), enter the amount you actually pay your shipping provider per shipment – not what your customers pay.
- Optional: override the suggestion via the Custom threshold (€) field if you want to test a specific amount. If you leave the field empty, the calculator works with its suggestion.
How to read the results
At the top you see the Recommended threshold – as soon as you enter your own value, the display switches to Your threshold. Below it is the Profit per order at the threshold: that is how much you keep after deducting shipping costs when an order reaches exactly the threshold. If this value appears in red, it is negative – you lose money on every free-shipping order.
The Uplift vs. cart value row shows in euros and percent how much customers would need to add to their cart on average to reach the threshold. The Break-even order value marks the point from which an order covers your shipping costs at all. If your threshold is below that, the calculator additionally shows a red warning – then you should adjust the threshold, margin, or shipping costs.
Practical tips around free shipping
Don’t calculate shipping costs with a single provider’s list price, but with the actual average across all parcel sizes and destination countries – bulky goods or international surcharges will otherwise distort the calculation considerably. Exceptions are legitimate: many stores explicitly exclude bulky goods, freight items, or individual categories from free shipping and point this out transparently.
Also keep in mind that shipping has to pay off in both directions: for categories with a high return rate – fashion, for example – the expected return shipping costs should be factored into the margin before you set the threshold.
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CLV Calculator
Calculate Customer Lifetime Value – revenue and profit per customer and the CLV:CAC ratio of your acquisition.
Frequently asked questions
- How do I calculate the optimal free shipping threshold for my store?
- Multiply your average cart value by 1.15 and round up to a clean amount. Also check the break-even order value so that the threshold at least covers your shipping costs. The calculator above handles both steps automatically.
- From which cart value does free shipping pay off?
- Free shipping pays off from the order value at which your margin fully covers the shipping costs. Beyond that, the threshold should be high enough for customers to deliberately top up their cart. Rule of thumb: about 15% above the current average cart.
- What is the break-even order value for free shipping?
- The break-even order value is the minimum order value from which your product margin just covers the shipping costs. It is calculated as shipping costs divided by the margin. If your threshold is below it, you make a loss on every free-shipping order.
- Does a free shipping threshold increase the order value?
- Yes, well-placed thresholds demonstrably increase the average order value, because many customers prefer to buy one more product rather than pay for shipping. It is important that the threshold feels achievable – a progress bar in the cart amplifies the effect.
- How often should I review the free shipping threshold?
- Review the threshold at least every six months or as soon as shipping costs, margin, or average cart value change significantly – for example after a shipping provider raises prices. For larger changes, ideally test two thresholds against each other with an A/B test.