How do I calculate AOV?

Divide **total revenue from orders** in a period by the **number of orders** in that same period, making sure both numerator and denominator follow the same rules for refunds, currency, and which orders count. The result is the average basket size, useful for merchandising and shipping threshold decisions.

Should AOV include shipping?

Include shipping if your reporting treats it as **revenue** and you want AOV to reflect cash collected; exclude it if you analyse **product revenue only**. The right choice depends on whether you optimise **payment fees** and **tax reporting** on inclusive totals or focus purely on merchandise strategy—just stay consistent across periods.

Good AOV is relative to **margin**, **category price points**, and **repeat purchase rate**. A higher AOV helps absorb per-order costs, but not if it requires deep discounting. Benchmark against your own trailing periods and cohorts rather than unrelated brands.

Does higher AOV always help ROAS?

Often yes, because more revenue per converting session can improve **return on ad spend** if costs are stable, but not if higher AOV comes from **lower-margin bundles** or **aggressive discounts** that hurt contribution. Validate with the [Ecommerce Profit Calculator](/tools/ecommerce-profit-calculator).

How often should I track AOV?

Review AOV **weekly** for active campaigns and **monthly** for strategic planning, using rolling windows to smooth promotions. Sudden AOV shifts can signal **traffic mix changes** or **inventory issues**, so pair AOV with conversion rate monitoring.

How does AOV relate to LTV?

AOV shapes **first-order economics**, while **lifetime value** incorporates repeat purchases and retention. Higher AOV can accelerate payback on acquisition spend, supporting healthier LTV if customers return. Use AOV for funnel optimisation and LTV models for long-run budgeting.

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AOV Calculator — Average Order Value Formula & Examples

Divide revenue by orders to track basket size, then test bundling and shipping thresholds that lift contribution without killing conversion.

**AOV = Revenue ÷ Orders** for the same period—mixing Black Friday revenue with October orders will distort the metric.

Total Revenue

Total revenue for the period

Total Orders

Number of orders placed in the same period

Adjust Total Orders100

110,000

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This calculator provides estimates for learning purposes. Results depend on your inputs and assumptions.

What is Average Order Value (AOV)?

Average Order Value divides total order revenue in a period by order count, summarising how large typical baskets are. It matters because many fixed costs per order—picking, packing, payment fees—shrink as a percentage when AOV rises. AOV is not profitability by itself: discount-heavy AOV can rise while margin falls. Pair AOV with the Ecommerce Profit Calculator and ad efficiency with the ROAS Calculator.

AOV formula and clean denominators

AOV = Revenue ÷ Orders. Use net revenue after returns if your goal is forward-looking economics. Exclude $0 replacement orders per policy. For multi-currency stores, convert consistently. Sessions × conversion × AOV ties to revenue planning—sanity-check with analytics. Common mistakes include counting subscriptions as single mega-orders without normalising to period revenue.

Worked example

A brand does $240,000 in net revenue across 6,400 orders in a month. AOV = $240,000 ÷ 6,400 = $37.50. If shipping thresholds move AOV to $42 with stable conversion, contribution often improves—model profit with the Ecommerce Profit Calculator.

AOV lift interpretation

Absolute AOV varies by vertical; focus on margin after lift.

Tier	Range	What it means
Strong lift	> 10% vs prior period	Meaningful if conversion and margin hold—scale learnings.
Healthy	3% – 10%	Typical for successful bundle or threshold tests.
Flat	±3%	Noise; extend test duration or change offer strength.
Decline	< -3%	Check discount mix, stockouts, or traffic quality.

AOV vs revenue per visitor

AOV ignores traffic volume; RPV combines conversion and AOV. A falling AOV with rising conversion can still grow revenue—report both. Marketing efficiency still needs the ROAS Calculator.

Increase AOV

Bundles and kits with clear savings. 2) Free shipping thresholds slightly above current median cart. 3) Post-purchase upsells that do not hurt refund rates. 4) Volume discounts on consumables. 5) Curated recommendations on PDPs. Test discounts with the Discount Impact Calculator.

Segment AOV

New vs returning customers, channels, and geos have different AOV—blended averages misprice promos. B2B wholesale orders should be segmented from DTC.

Common mistakes

Celebrating AOV up while units per order collapse, or inflating AOV with mandatory fees customers perceive as unfair.

Use cases

Merchandising sets bundles; finance models shipping thresholds; performance marketers tune minimums alongside the ROAS Calculator.

Frequently Asked Questions about Average Order Value

How do I calculate AOV?: Divide **total revenue from orders** in a period by the **number of orders** in that same period, making sure both numerator and denominator follow the same rules for refunds, currency, and which orders count. The result is the average basket size, useful for merchandising and shipping threshold decisions.
Should AOV include shipping?: Include shipping if your reporting treats it as **revenue** and you want AOV to reflect cash collected; exclude it if you analyse **product revenue only**. The right choice depends on whether you optimise **payment fees** and **tax reporting** on inclusive totals or focus purely on merchandise strategy—just stay consistent across periods.
What is a good AOV?: Good AOV is relative to **margin**, **category price points**, and **repeat purchase rate**. A higher AOV helps absorb per-order costs, but not if it requires deep discounting. Benchmark against your own trailing periods and cohorts rather than unrelated brands.
Does higher AOV always help ROAS?: Often yes, because more revenue per converting session can improve **return on ad spend** if costs are stable, but not if higher AOV comes from **lower-margin bundles** or **aggressive discounts** that hurt contribution. Validate with the [Ecommerce Profit Calculator](/tools/ecommerce-profit-calculator).
How often should I track AOV?: Review AOV **weekly** for active campaigns and **monthly** for strategic planning, using rolling windows to smooth promotions. Sudden AOV shifts can signal **traffic mix changes** or **inventory issues**, so pair AOV with conversion rate monitoring.
How does AOV relate to LTV?: AOV shapes **first-order economics**, while **lifetime value** incorporates repeat purchases and retention. Higher AOV can accelerate payback on acquisition spend, supporting healthier LTV if customers return. Use AOV for funnel optimisation and LTV models for long-run budgeting.

Optimise the full cart

Pair AOV with profit, discount, and ROAS calculators for merchandising decisions.

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