Free Shipping Threshold Calculator

Enter the shipping cost and gross margin to get the minimum order value.

How to use

  1. Enter your values in the fields above.
  2. Press Calculate to see your result instantly.
  3. Use the Share button to copy a link to your result.

About this calculator

Offering "free" shipping doesn't remove the cost — it shifts who absorbs it, and this calculator finds the minimum order value at which that shift still leaves margin intact: threshold = shipping cost ÷ gross margin. The idea is that the extra items a customer adds to qualify generate enough gross profit to cover the shipping the store is giving away.

E-commerce operators use this threshold to set a "free shipping over $X" cutoff that boosts average order value without quietly eating into profit on every order. Set it too low and shipping erodes margin on small orders; set it too high and customers abandon carts instead of adding items.

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