Shopify Shipping Calculator

    Free shipping lifts conversion but adds cost. Enter your threshold, average order value, actual carrier cost, packaging, monthly orders, and what percent qualify for free shipping. Also set what you charge for shipping on non-qualifying orders to see net shipping cost and cost per order.

    Instant calculations · Editable fee assumptions · Export-ready results

    Inputs

    Values update results instantly. Adjust fee assumptions to match your seller dashboard.

    Threshold

    USD

    Order value over which shipping is free.

    USD

    Average order value today.

    Costs

    USD

    What you pay carrier per order.

    USD

    Box, mailer, inserts.

    USD

    What buyer pays when order does not qualify for free shipping.

    Volume

    Average orders per month.

    %

    Percent of orders above threshold.

    Results

    Live estimates based on your inputs and editable fee assumptions.

    Free shipping threshold

    $50.00

    Your current rule.

    Average order value

    $45.00

    Current AOV.

    % qualifying for free ship

    35.0%

    Share getting free shipping.

    Orders with free shipping

    35

    Monthly count free.

    Orders with paid shipping

    65

    Monthly count paid.

    Cost of free-shipping orders

    $245.00

    Carrier + packaging for free-ship orders.

    Shipping fees collected

    $324.35

    Revenue from paid-ship orders.

    Net shipping cost

    $375.65

    What you pay minus what you collect.

    Net cost per order

    $3.76

    Net shipping divided by total orders.

    Total carrier + pack

    $700.00

    All shipping + packaging before fees collected.

    What this means

    35 of 100 orders get free shipping at $50.00 threshold. Free-ship fulfillment $245.00, paid orders cost $455.00 but collect $324.35. Net shipping $375.65 ($3.76 per order). Current AOV $45.00 vs threshold $50.00 means 5.00 gap to free shipping.

    Shipping cost breakdown

    Interactive breakdown of fees, costs, and remaining profit.

    Distribution

    • Free-ship cost
      $245.00
      23.9%
    • Paid-ship cost
      $455.00
      44.4%
    • Shipping collected
      $324.35
      31.7%

    Total $1,024.35 · 3 segments · interactive

    Line-item breakdown

    Dollar amounts, share of revenue, and visual proportion.

    Free shipping threshold
    $50.00
    Average order value
    $45.00
    % qualifying
    35.0%
    Free-ship orders
    35
    Paid-ship orders
    65
    Free-ship cost
    $245.00
    Paid-ship fulfillment
    $455.00
    Shipping fees collected
    $324.35
    Total fulfillment
    $700.00
    Net shipping cost
    $375.65
    Net per order
    $3.76

    Assumptions used

    • • 35 free / 65 paid at 35% qualify
    • • Carrier $5.50 + packaging $1.50 = $7.00 per order
    • • Charge $4.99 on paid orders

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    How it works

    Methodology & formulas

    This calculator is transparent by design. Review the steps and formulas so you can trust the estimate and adjust assumptions when your dashboard differs.

    Calculation steps

    1. 1Orders with free shipping = round(avgMonthlyOrders × percentQualify/100).
    2. 2Orders with paid shipping = avgMonthlyOrders − freeShipOrders.
    3. 3Free shipping fulfillment cost = freeOrders × (actualShippingCost + packagingCost).
    4. 4Paid shipping fulfillment cost = paidOrders × (actualShippingCost + packagingCost).
    5. 5Shipping revenue collected = paidOrders × shippingPaidByCustomer.
    6. 6Total fulfillment cost = freeCost + paidCost.
    7. 7Net shipping cost = totalFulfillmentCost − paidShippingRevenue.
    8. 8Cost per order = netShippingCost / avgMonthlyOrders when orders > 0.

    Formulas

    • FreeOrders = round(orders × qualify%)
    • PaidOrders = orders − freeOrders
    • FreeCost = freeOrders × (carrier + pack)
    • PaidCost = paidOrders × (carrier + pack)
    • ShippingRevenue = paidOrders × charge
    • TotalFulfillment = freeCost + paidCost
    • NetShipping = TotalFulfillment − ShippingRevenue
    • CostPerOrder = NetShipping / totalOrders

    Important assumptions

    • Orders qualifying = avgMonthlyOrders × percentOrdersQualify/100 rounded.
    • Free shipping total cost = qualifying orders × (carrier + packaging).
    • Paid shipping total cost = non-qualifying orders × (carrier + packaging).
    • Net shipping cost = total carrier+pack cost − shipping fees collected on non-qualifying orders.
    • Does not include returns or dimensional weight surcharges unless added to carrier cost.

    Worked example

    $50 threshold at $45 AOV

    Threshold $50, AOV $45, carrier $5.50, packaging $1.50, charge $4.99 below threshold, 100 orders, 35% qualify.

    Free orders 35 cost $245, paid orders 65 cost $455 plus collect $324.35 shipping fees, total fulfillment $700, net shipping $375.65, cost per order $3.76.

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