Shipping & Logistics

Free Shipping Threshold Calculator

Find a “free shipping over $X” threshold that pays for itself — high enough that the extra spend covers your shipping cost.

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Your numbers

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Results

Break-even free shipping threshold

$70.00

Customers must add $20.00 on average for the extra margin to cover shipping.

Break-even threshold
$70.00
Common rule of thumb (15–30% above AOV)
$57.50 – $65.00
Extra spend needed per order
$20.00

Download your results

Branded KleverKlimb report with your inputs and results.

How it works

The formula

Exactly what this calculator does with your numbers — no hidden assumptions.

01calculate

Break-even threshold

Threshold = AOV + shipping cost ÷ margin. At a 40% margin, covering $8 of shipping takes $20 more in sales.

02redeem

Rule of thumb

Many stores set the threshold 15–30% above their AOV so it is reachable but still nudges a bigger basket.

03tune

Then test

Try the threshold for a few weeks and watch AOV, conversion rate and shipping cost per order before settling on it.

FAQ

Questions, answered

Q1Should my threshold be above or below my AOV?
Slightly above. If it’s below your AOV, most customers already qualify and you just give away shipping; if it’s far above, few customers will reach it.
Q2What if the break-even threshold looks too high?
That means your margin is too thin to absorb shipping. Consider a lower-cost shipping option, raising prices slightly, or offering free shipping only on qualifying products.
Q3Does free shipping increase conversion?
It often does — unexpected shipping costs are a common reason shoppers abandon checkout. Test it and compare conversion rate and profit per order.
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