Average order value calculator
Average order value is revenue divided by orders: what a typical checkout is worth. It quietly sets everything downstream, because the gross profit in one order is the ceiling on what you can pay to acquire it. Solve it any way and see that ceiling.
The number you searched for is one step. Run it all the way down to profit, then change anything on the right to see what moves the bottom line.
Weakest link: conversion rate (2% vs 2.8% typical). Bring it to 2.8% and baseline profit goes to $-604, a +$399 swing, more than tuning any cost metric.
Drop in one product and the Target ROAS calculator works your real P&L backwards to the exact number to optimize, free, no signup.
Directional medians; these vary widely by brand and stage. A number is only judged against what it produces downstream, which is what the funnel above shows.
What is average order value (AOV)?
AOV is the average revenue per order: total revenue divided by number of orders. It is often the cheapest growth lever you have, because raising it lifts the profit on traffic you are already paying for, with no extra ad spend.
How to calculate AOV
Why AOV decides how much you can spend
A higher AOV raises the gross profit per order, which raises the CAC you can afford and lowers the ROAS you need to break even. Lifting AOV from $75 to $95 at a 45% margin adds $9 of gross profit to every order, money that goes straight into affordable acquisition.
How to increase AOV
- Bundle complementary products so the typical basket is larger by default.
- Add volume tiers and a free-shipping threshold just above your current AOV.
- Offer relevant upsells and cross-sells at the cart and post-purchase.
- Introduce a premium tier or size so there is a higher option to choose.
Feed your AOV and margin into the Target ROAS calculator to see exactly how much you can pay to acquire and still profit.
The operator’s playbook
How a paid-media operator reads this number, not a glossary definition.
AOV is the cheapest lever you have+
Raising AOV with bundles, volume tiers, upsells and free-shipping thresholds widens the gross profit in every order, which directly lifts the CAC you can afford and the CPM you can stomach. It is usually faster than cutting ad costs.
AOV without margin lies+
A $150 AOV at 20% margin gives you $30 to acquire; a $60 AOV at 60% gives you $36. Always read AOV next to margin; the gross profit per order, not the order value, is what funds acquisition.
Frequently asked questions
How do you calculate average order value?
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Revenue divided by number of orders. $42,000 over 560 orders is a $75 AOV. This tool also solves for the revenue or orders implied by a target AOV.
What is a good AOV?
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It is category-specific (table above). What matters is not the number but the gross profit inside it, because that profit is the ceiling on your acquisition cost.
How do I increase AOV?
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Bundles, quantity breaks, post-purchase upsells, and free-shipping thresholds set just above current AOV. Each dollar of added AOV at your margin is a dollar more you can spend to acquire.
Why is AOV important?
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It sets how much gross profit each order makes, which sets the CAC you can afford and the ROAS you need to break even. Raising AOV lifts profit on traffic you already pay for.
How does AOV affect ROAS?
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A higher AOV lowers your break-even ROAS, because each sale carries more gross profit to cover the ad cost. Lift AOV and the same ad spend turns profitable at a lower return.
What is the difference between AOV and revenue per visitor?
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AOV is revenue per order; revenue per visitor spreads revenue across all visitors, including those who do not buy. RPV blends AOV with conversion rate.
Built by Yehonatan Tav, paid media for ecommerce brands spending $50k to $500k a month. Figures are illustrative; run the logic on your own numbers.