ShipMargin
ProfitabilityVerified formula

Free Shipping Threshold Calculator

Set a free-shipping threshold from unit economics instead of copying a competitor.

Free · no sign-upInputs stay in this browser
Decision inputs
Adjust the example values to match one product, order, shipment, or planning period.
Live result Deterministic
Decision summary
Calculated from the visible formula and assumptions on this page.

Your result will appear here

Edit the example and calculate. No account is required.

How to use this tool

A decision, not just an output

Estimate the basket value needed to absorb average shipping cost and preserve a desired contribution amount. Read the output alongside its interpretation, assumptions, limitations, and source. Marketplace rates and external requirements should always be confirmed at the linked official source.

Formula & example

Transparent method

Minimum threshold = (average shipping cost + desired contribution) ÷ expected basket margin rate.

Example: $8 average shipping plus $12 desired profit at 50% basket margin requires a $40 threshold.

Assumptions

  • • Expected basket margin applies to orders near the threshold.

Limitations

  • • Conversion lift and customer behavior must be tested separately.

Frequently asked questions

Is the Free Shipping Threshold Calculator free?

Yes. The primary result is available without creating an account or entering an email address.

How is the result calculated?

Minimum threshold = (average shipping cost + desired contribution) ÷ expected basket margin rate.

What should I verify before using it?

Conversion lift and customer behavior must be tested separately.

Are my inputs private?

Core inputs are processed in your browser. ShipMargin records anonymous tool interaction events, not the business values entered into this form.