Shipping Cost Calculator
Blended shipping cost and free-ship threshold.
Enter your values
Enter the carrier cost per order in $.
Enter the packaging cost in $.
Enter the pick and pack labour in $.
Enter the gross margin in %.
Enter the current aov in $.
Results update instantly as you type — no submit needed. Your values are remembered on this device, and the shareable link reopens the calculator with exactly these numbers.
- Total fulfilment cost
- $10.70
- Free shipping threshold
- $22.29
- Uplift needed on AOV
- -60.2%
- Shipping as % of AOV
- 19.1%
Quick answer
A free shipping threshold works when the extra order value covers the shipping you absorb.
Threshold = shipping cost ÷ gross margin
At a glance
| What it does | Blended shipping cost and free-ship threshold. |
|---|---|
| Category | Business |
| Inputs needed | Carrier cost per order, Packaging cost, Pick and pack labour, Gross margin, Current AOV |
| Main output | Total fulfilment cost |
| Formula | Threshold = shipping cost ÷ gross margin |
| Cost | Free — no sign-up, no download |
How to use the Shipping Cost Calculator
- 1Enter carrier, packaging and labour costs.
- 2Enter your gross margin.
- 3Compare the threshold against your current AOV.
Inputs explained
- Carrier cost per order($)
- Enter the carrier cost per order in $.
- Packaging cost($)
- Enter the packaging cost in $.
- Pick and pack labour($)
- Enter the pick and pack labour in $.
- Gross margin(%)
- Enter the gross margin in %.
- Current AOV($)
- Enter the current aov in $.
Worked example
Using the values the calculator loads with:
Inputs
- Carrier cost per order7.2 $
- Packaging cost1.4 $
- Pick and pack labour2.1 $
- Gross margin48 %
- Current AOV56 $
Results
- Total fulfilment cost$10.70
- Free shipping threshold$22.29
- Uplift needed on AOV-60.2%
- Shipping as % of AOV19.1%
Frequently asked questions
Should shipping be free?
Only above a threshold that keeps contribution positive.
What if the threshold is far above AOV?
Bundle products or charge flat-rate shipping instead.
What do I need to enter into the Shipping Cost Calculator?
Just 5 values: carrier cost per order, packaging cost, pick and pack labour, gross margin, current aov. Every field starts with a realistic example, so you can change one number at a time and watch the result update instantly.
How does the Shipping Cost Calculator work out the answer?
A free shipping threshold works when the extra order value covers the shipping you absorb. It applies the formula Threshold = shipping cost ÷ gross margin and shows the working so you can check each step by hand.
Is the Shipping Cost Calculator free, and do I need an account?
It is completely free with no sign-up, no download and no usage limit. Everything is calculated in your browser, so the numbers you type never leave your device.
Results are estimates for general information. For medical, legal, structural or financial decisions, confirm with a qualified professional.