Free Shipping Threshold Calculator

Find the order value where free shipping pays for itself, then see what a threshold does to monthly profit.

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Your numbers

Your store today
$

The average shipping fee customers pay at checkout today.

$
%
orders
Test a threshold
$

Check your orders report. These customers get free shipping without spending more.

%

Of orders below the threshold. 20–40% is common.

%

Conversion lift from advertising free shipping. Be conservative.

%

Your result · updates as you type

Suggested free shipping threshold

$65

Break-even is $64.64: a customer who tops up to that amount adds enough margin to cover the $6.95 shipping fee you stop charging.

Break-even threshold
$64.64
Above your AOV
+25%
Monthly profit at $70
$568

The offer pays for itself at these numbers. Show a progress bar in the cart so customers see how close they are.

Breakdown

Orders topping up to $70
255
Profit per top-up (extra margin − fee you waive)
$2.95
From customers who top up
$752
Free shipping on orders already above it
−$1,043
From 30 extra orders
$858
Change in monthly gross profit
$568

How the free shipping threshold is worked out

Free shipping over a set amount only pays when the customers who add items to qualify bring in enough extra margin to cover the shipping fee you stop charging. The break-even threshold is the order value where those two balance.

Break-even threshold = average order value + (shipping fee you waive ÷ gross margin)
Gross margin is your product margin after cost of goods, as a decimal.

Example

Average order value
$52.00
Shipping fee customers pay today
$6.95
Gross margin
55%

Break-even = 52 + (6.95 ÷ 0.55) = $64.64. Rounded up to a number shoppers recognise, that's a $65 threshold.

The calculator never suggests less than 15% above your AOV. A threshold that sits right on your average order is reached by customers who would have spent that anyway, so you give away shipping without changing behaviour.

Why the monthly result can be negative

The break-even figure only looks at customers who stretch to reach the threshold. The monthly result adds the two things that decide whether the offer works:

  • Orders already above the threshold get free shipping without spending a cent more. That's pure cost, and for stores with a wide spread of order values it's often the biggest number in the breakdown.
  • Extra orders from advertising free shipping. Unexpected costs at checkout are one of the most common reasons shoppers abandon a cart, so a clear threshold can lift conversion. That lift is usually what makes the offer profitable.

Find the share of orders already above a threshold by exporting your orders (Shopify: Orders → Export; WooCommerce: Analytics → Orders → Download) and counting how many subtotals clear it.

Setting a free shipping threshold in Shopify and WooCommerce

  1. 01

    Shopify

    Go to Settings → Shipping and delivery, open your shipping profile, and add a rate in each zone. Set the price to 0, choose Add conditions → Based on order price, and enter your threshold as the minimum.

  2. 02

    WooCommerce

    Go to WooCommerce → Settings → Shipping, edit a zone and add the Free shipping method. Under Free shipping requires, pick A minimum order amount and enter the threshold. Decide whether coupons count towards it with the “apply minimum order rule before coupon discount” option.

  3. 03

    Show progress in the cart

    A line like “You're $12 away from free shipping” does most of the work. Most themes support it natively or with a small snippet.

Questions people ask

What's a good free shipping threshold?

A common starting point is 15 to 30% above your current average order value, as long as it's at or above your break-even threshold. Test it for a few weeks and watch both AOV and conversion rate.

Should I offer free shipping on every order instead?

Only if your margins can absorb the full shipping cost on your smallest orders. Free shipping on everything usually works best for stores with high AOV and light products; everyone else is better served by a threshold or a low flat rate.

What if my break-even threshold is far above my AOV?

Few customers will stretch 40% or more to qualify. Try a lower flat rate, a threshold combined with a bundle that gets people there, or raising margin on the products that usually ship alone.

Does the calculator include the shipping I pay the carrier?

Not directly. What changes when you add a threshold is the shipping fee you stop charging customers, because you pay the carrier either way. If you already absorb part of the cost, enter only what customers pay today.

Want this builtinto your store?

I'm Emmanuel, a Shopify and WooCommerce developer. If this tool pointed at something you'd rather have fixed for you (a faster store, cleaner product data, a migration, a custom feature), send me a note.

Emmanuel Asika

Emmanuel Asika

Shopify & WooCommerce developer, Dublin

I build and fix online stores: new builds, migrations, speed, SEO and the custom bits apps can't do.

hello@emmanuelasika.com

Last reviewed 29 September 2026.