How it works
Additional revenue needed to fund shipping = shipping cost divided by contribution margin; suggested threshold = current order value plus that revenue.
Input definitions
- Average shipping cost
- Enter the value in the labeled unit.
- Contribution margin (%)
- Enter the value in the labeled unit.
- Current average order value
- Enter the value in the labeled unit.
A worked example
- Average shipping cost
- 8
- Contribution margin (%)
- 40
- Current average order value
- 45
Assumptions & limits
Uses only the values entered and does not fetch live prices, fees, rates or eligibility rules. Verify quotes, contracts, measurements and local requirements before acting.
Sources & review
Maintained by AnsRio. Methods and examples use automated checks; this does not imply independent professional certification.
Method updated 2026-10-20. Content checked against the stated method and examples. Our verification approach.
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Common questions
Is this an optimal marketing threshold?
No. It is a cost-coverage starting point; customer response and basket composition also matter.
How does Free shipping threshold planner calculate the result?
Additional revenue needed to fund shipping = shipping cost divided by contribution margin; suggested threshold = current order value plus that revenue.
What should I check before using Free shipping threshold planner?
Uses only the values entered and does not fetch live prices, fees, rates or eligibility rules. Verify quotes, contracts, measurements and local requirements before acting.