Business

Shipping Cost Calculator

Blended shipping cost and free-ship threshold.

Enter your values

ⓘ Live results

Results
Total fulfilment cost
$10.70
Free shipping threshold
$22.29
Uplift needed on AOV
-60.2%
Shipping as % of AOV
19.1%

Quick answer

A free shipping threshold works when the extra order value covers the shipping you absorb.

Threshold = shipping cost ÷ gross margin

How to use the Shipping Cost Calculator

  1. 1Enter carrier, packaging and labour costs.
  2. 2Enter your gross margin.
  3. 3Compare the threshold against your current AOV.

Worked example

Using the values the calculator loads with:

Inputs

  • Carrier cost per order7.2 $
  • Packaging cost1.4 $
  • Pick and pack labour2.1 $
  • Gross margin48 %
  • Current AOV56 $

Results

  • Total fulfilment cost$10.70
  • Free shipping threshold$22.29
  • Uplift needed on AOV-60.2%
  • Shipping as % of AOV19.1%

Frequently asked questions

Should shipping be free?

Only above a threshold that keeps contribution positive.

What if the threshold is far above AOV?

Bundle products or charge flat-rate shipping instead.

About this calculator

Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.