Free Shipping Break Even Calculator

Work out free shipping break even instantly with clear inputs, formula shown and shareable results.

About Free Shipping Break Even Calculator

Absorbing shipping costs margin on every order, so it only pays if the conversion uplift brings in enough additional orders. The break-even uplift is shipping cost divided by the margin left after shipping.

Formula

Free shipping break-even

Required uplift = shipping cost / (order value × margin - shipping cost)

Worked example

With the default values below, Free Shipping Break Even Calculator returns Margin Per Order After Shipping of $556.00. Change any input above and every figure here is recalculated in your browser.

Inputs used

Shipping Cost Absorbedminimum 0: 280
Gross Marginaccepts 1–100 %: 38 %
Conversion Uplift From Free Shippingaccepts 0–100 %: 12 %
Average Order Valueminimum 0: 2,200

Results

Margin Per Order After Shipping: $556.00
Conversion Uplift Needed To Break Even: 50.360%
Value Of The Assumed Uplift: $66.72
Assessment: The uplift does not cover the shipping cost

Step by step

1Values used
2Free shipping break-even
3Margin Per Order After Shipping= 556.00
4Conversion Uplift Needed To Break Even= 50.360
5Value Of The Assumed Uplift= 66.72
6Assessment= The uplift does not cover the shipping cost

Assumptions and limits

The result is derived only from the 4 inputs listed above. Anything not among them is not part of the calculation.
In particular, this calculator does not take inflation, tax or compounding frequency into account.
Figures are rounded for display to 3 decimal places, so totals built from several rounded parts can differ slightly from the unrounded arithmetic.
Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.
This is an estimate for general information and not professional financial, tax or legal advice. See the full disclaimer for the limits that apply to this kind of calculator.

How these calculators are built and tested is described on the Methodology page. If a figure looks wrong, please report it.

Figures are estimates based on the inputs given. Marketing performance, platform fees and conversion behaviour vary by audience, channel and season. Use this as a planning guide, not a forecast.

Frequently Asked Questions

Why is the required uplift often large?

Because free shipping applies to every order including those that would have converted anyway.

Is a threshold better than universal free shipping?

Usually yes. It captures the conversion benefit while protecting margin on small orders.