Free Shipping Threshold Calculator
A free tool from EcomWatchdog, which emails you when competitors change their prices and promotions.
Updated November 2, 2026
A free-shipping minimum pays for itself when the items shoppers add to reach it earn enough profit to cover the shipping. The break-even minimum is your average order value plus your shipping cost divided by your margin. With a $60 average order, $8 shipping and a 40% margin, that's $80.
What you pay to ship it.
What's left of each sale after product cost.
$80
break-even free-shipping minimum.
A typical order has to add $20 of products for their profit to cover the $8 shipping.
This assumes shoppers add items to reach the minimum. It finds the minimum that covers your shipping cost, not necessarily the most profitable one for your store.
Real example: a grooming brand we track raised its free-shipping minimum from $18 to $25 on October 28, 2026, then shipped every order free from October 30. EcomWatchdog reported each change the next morning.
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How it's worked out
- Amount a shopper must add = shipping cost ÷ your margin.
- Break-even minimum = average order value + that amount.
- Rounded = the break-even minimum rounded up to the next $5.
Example
With a $60 average order, $8 shipping and a 40% margin, a shopper has to add $20 of products to earn back the $8 shipping (40% of $20). So the break-even minimum is $80. Set it lower and the extra items don't pay for the shipping.
Questions
- What about orders already above the minimum?
- Those shoppers get free shipping without adding anything, so their shipping comes out of your profit. If many of your orders already clear the minimum, set it higher, or check against your own order data.
- Should I round the minimum?
- Most stores use a round number like $75 or $100. The calculator rounds up to the next $5, so the rounded minimum never falls below break-even.
- What margin should I use?
- Your gross margin on the products people add: how much of each dollar of sales is left after the product's cost. If you're not sure, use your store-wide average.
- Does a free-shipping minimum raise order value?
- Often, because shoppers add items to qualify, but not always. Watch your average order value for a few weeks after you change it.
Want to know when competitors change their free-shipping minimum? EcomWatchdog emails you when they do. Try it free for 14 days.