Free shipping threshold
Calculator.
We compare extra basket contribution with the added shipping subsidy.
Your assumptions
Illustrative defaults only, never Further or client figures. Currency is AUD, excluding GST. Enter 20 for 20%. Optional fields can stay blank or zero. Your inputs stay on this page.
Scenario result
Monthly contribution change
A$0.00
- Break-even basket upsell per affected order
- A$20.00
- Affected orders per month
- 200
- Contribution change per affected order
- A$0.00
- Items to reach threshold from current AOV
- N/A
The threshold adds A$0 a month in contribution. Each affected order has to grow by A$20.00 for the threshold to pay for itself. It touches about 200 orders a month.
For newly qualifying orders, use the added shipping subsidy versus the current customer-paid baseline.
The maths
Affected orders = 1,000 × 20% = 200. Per-order change = (20 × 40%) - 8 = 0 AUD.
Monthly impact = 200 × 0 = 0 AUD. Break-even upsell = 8 / (40 / 100).
Basket gap = max(0, 100 - 80) = 20 AUD. Optional item count = ceil(20 / 0). Threshold doesn't determine the affected share or expected uplift.
Before you use it
The threshold alone can't tell us how many customers change baskets. Enter that share and expected uplift separately. Use the same GST basis for threshold and AOV; this is a comparison, not a customer-facing threshold recommendation.
This is a planning scenario, not a forecast or financial advice. Compare it with your actual order and customer records before changing spend.
Questions worth asking
Can the threshold tell us the affected customer share?
No. You need basket distribution data or an explicit assumption. The distance between AOV and threshold alone doesn't reveal how many orders will change.
How do I treat orders already receiving free shipping?
Use only the additional subsidy versus their current shipping cost, often zero. For newly qualifying orders, use the added subsidy compared with customer-paid shipping. Don't count the existing subsidy twice.
Keep working through the numbers
Put the numbers to work.
We can look at the assumptions with you and decide what to test next.