Is this calculator specific to Shopify?

The math is ecommerce-specific and works especially well for Shopify stores because it includes the costs Shopify merchants usually need to model: COGS, payment fees, shipping, returns, ad spend, inventory, conversion rate, or repeat purchases depending on the tool.

Should I use gross margin or contribution margin?

Use contribution margin when you are making advertising, discount, or growth decisions. Gross margin is useful, but contribution margin is stricter because it accounts for variable costs like payment fees, fulfillment, shipping, returns, and app costs.

Why does the tool use default values?

Defaults make the calculator useful immediately and show the shape of the result before you enter your own numbers. Replace them with your store's actual numbers before making a final decision.

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AOV Target Calculator

Find the average order value needed to hit a target profit per order after margin, payment fees, and shipping subsidy.

AOV target calculator

Find the order value needed to hit a target profit per order after gross margin, payment fees, and shipping subsidy.

Current AOV

Gross margin

Target profit per order

Shipping subsidy

Payment fee

Fixed payment fee

Target AOV

$77.35

Current profit/order

$28.04

AOV increase needed

$13.35

AOV lift

20.9%

Suggested threshold

$80.00

Use the suggested threshold for bundles, cross-sells, and free shipping bars. The goal is profit per order, not a bigger cart that loses margin.

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About this tool

What this free tool calculates

Use this when planning bundles, free shipping bars, cross-sells, and upsells. It works backward from profit per order.

How to use the result

The calculator solves target AOV from gross margin, payment fees, fixed payment fee, shipping subsidy, and target profit per order.

Use the target AOV as the threshold for bundles or free shipping, then test whether customers can realistically reach it.

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Why the calculator stays input-driven

This free ecommerce tool does not guess demand, scrape competitors, or invent benchmarks. Change the numbers to match your store, then use the result to decide whether a product, campaign, discount, or inventory move is worth doing.

Frequently Asked Questions

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