Free Shipping Threshold Calculator
Find the optimal free-shipping threshold based on your AOV and unit economics — the threshold that lifts AOV without destroying margin.
Inputs
Threshold
—
Run calculation
Conservative threshold (+15%)—
Recommended (+25%)—
Aggressive (+40%)—
Margin breakeven point—
The 25% rule for shipping thresholds
A free-shipping threshold ~25% above your current AOV lifts AOV by 10-15% without significant margin damage. Customers will add an extra item to qualify; the marginal item carries full margin which absorbs the shipping cost.
Frequently Asked Questions
Should I always offer free shipping?
Not always. Some categories (heavy items, premium positioning) preserve margin better with paid shipping. Test by category.
Want a CRO + offer audit on your e-commerce store?
Riman Agency builds DTC growth programs.