How to use the free shipping threshold calculator
Raising a free shipping threshold cuts the number of orders where you absorb the shipping, and some shoppers add another item to qualify, lifting the average order value. It also pushes some shoppers away entirely, so order count can fall. Three things move at once, which is why the decision is hard to eyeball.
For that reason this calculator asks you to enter the expected orders, average order value and free shipping share after the change rather than guessing a conversion drop for you. How much conversion moves depends on your category and customers. Numbers from a past threshold change or a live test give the most reliable answer.
Both scenarios are built the same way: monthly revenue times your product contribution margin rate, minus the orders shipped free multiplied by your shipping cost per order. Orders that pay for shipping are treated as costing you nothing, since the customer covers it. The threshold amounts themselves appear in the table for reference and are not used in the math.
Frequently asked questions
Try several values for orders and average order value and watch where the margin change flips negative. That break point tells you how much order loss the new threshold can absorb.
Put only your own share in the shipping cost per order field. If the customer pays half, enter the half you actually pay.