Free Shipping Calculator: Compare Order Profit
Does an order leave more profit when a customer adds products to qualify for free shipping? Compare the original basket with the larger basket, including the shipping payment you give up.
Calculate Free Shipping Thresholds
How to use the free shipping order calculator
Enter the selling price and unit cost for up to three products. Use actual prices after discounts. Enter the quantities already in the basket, then enter only the extra quantities being added. For example, two items already in the basket plus one extra item gives three in the completed order. Enter zero extra quantity when that product is not being added; use zero in both quantity fields for unused products.
Enter your delivery cost, the customer’s shipping charge below the threshold, and your chosen free shipping threshold. Amounts are in US dollars. The Product totals section shows Products in basket and Extra products added separately, with quantity, product value and cost. The result comparison shows the original order and the combined order after adding those extras. Select Calculate to update the comparison; Reset restores the example.
Orders qualify when their product total reaches or exceeds the threshold. Shipping charges are excluded from that eligibility total. This checks a threshold you choose; it does not find an optimal threshold or predict customer behavior.
Understand the comparison
Revenue includes any shipping payment collected from the customer. Gross profit here is revenue minus product costs and delivery costs. Ads, payment fees, taxes, returns and other operating expenses are excluded. A positive difference means this larger order leaves more gross profit under the stated assumptions.
Margin is gross profit divided by total revenue, including shipping collected. Its change is shown in percentage points. More gross profit can come with a lower margin percentage.
Example calculation
This example follows the last Calculate action above. Its product inputs, shipping figures, comparison and explanation update together. Reset restores the hypothetical starting values.
Use the calculator above to display the worked example.
How the calculation works
- Product total = sum of each unit price multiplied by quantity.
- Product cost = sum of each unit cost multiplied by quantity.
- Revenue = product total plus shipping charged.
- Gross profit = revenue minus product cost minus delivery cost.
- Profit change = after gross profit minus before gross profit.
When the before order pays shipping, the after order qualifies for free shipping and delivery cost stays unchanged, the shortcut is added product profit minus lost shipping payment. If an added item earns only $4 and you give up $6 shipping, gross profit falls by $2. If it earns $6, profit stays the same.
Choosing a threshold to test
Compare realistic baskets with both low-margin and higher-margin add-ons. A threshold that improves one example can reduce profit on another. Customers already above the threshold may receive free shipping without adding products.
The calculator assumes the same delivery cost for both orders. Larger parcels or multiple supplier shipments can increase it. Subtract any extra delivery cost separately when interpreting the result. Keep delivery charges out of unit product costs when also entering them as shipping, to avoid counting them twice.
Review actual order values, product mix, shipping charges and profit during a trial. This calculation cannot predict how many shoppers will add items, abandon checkout or buy because of the offer.
Common questions
Does this calculate the best threshold automatically?
No. Enter a proposed threshold and compare two baskets using their actual prices and costs. You can repeat the calculation with different thresholds or quantities.
What if the original order already qualifies?
The table shows its actual shipping treatment and the message flags that it already qualifies. Lower the before quantities to model an order that initially pays shipping.
What if the larger order is still below the threshold?
Both orders retain the customer shipping charge. The message shows the product spend still needed to qualify.
Can I include discounts?
Enter the final unit prices the customer pays. The tool checks the threshold against that discounted product total. Confirm that this matches your store’s eligibility rule.
Compare other offers
Use the Discount Profit Calculator for a discounted sale or the Bundle Discount Calculator for products sold together.