Find Your Free-Ship Sweet-Spot
Discover the exact order value to offer free shipping without hurting your profit—and see how a bump in conversions can skyrocket your revenue.
How to Use This Calculator
- Enter Your Average Order Value. This is the current average dollars per order on your site.
- Input Your Profit Margin (%). The percent of each sale that’s profit after costs.
- Fill in Regional Shipping Costs & Distribution.
- Domestic, EU, and ROW shipping cost per order.
- Approximate percent of orders going to each region.
- Enter Monthly Order Count. How many orders you process each month.
- (Optional) Add Projected Conversion Uplift. Estimate the % sales lift free-ship will bring.
- Click “Calculate My Sweet-Spot.” Instantly see your ideal free-ship threshold, profit buffer, and extra revenue from uplift.
People Also Ask
What is a free-shipping sweet-spot threshold?
It’s the minimum order value you should set for free shipping so that the extra revenue from orders covers your shipping cost and profit margin.
How do I calculate my free-shipping threshold?
Use the formula:
(Weighted Shipping Cost ÷ Profit Margin) + Average Order Value.
This tool does it for you based on your regional rates and margins.
Does offering free shipping really boost sales?
Yes—studies show free shipping can increase conversion rates by up to 30%, depending on your product and audience. Use the “Projected Conversion Uplift” field to model your own uplift.
Should I charge different free-shipping thresholds by region?
If your shipping costs vary widely by region, setting one global threshold can either cut into profit or scare off distant customers. This calculator lets you weight each region so you can pick a balanced, profitable threshold.
What if my profit margin changes?
Simply update the “Profit Margin” field and recalculate. You’ll instantly see how the threshold shifts if your margins tighten or expand.
