Average Order Value Calculator (AOV Formula)
Work out your average order value (AOV) from total revenue and number of orders, or build it from the price and units of up to five products. Then test how much extra revenue a higher order value brings if order volume stays the same.
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Formula
- From revenue:
AOV = total revenue / number of orders - From a mix:
revenue = sum of (price x units)for each product, thenAOV = revenue / orders - Lift:
new AOV = AOV x (1 + lift)andextra revenue = orders x (new AOV - AOV)
The lift is always applied to the AOV from the selected mode and assumes the number of orders stays the same.
Worked example
- Revenue 5,000 from 100 orders: AOV = 50. A 10% lift gives 55 and 500 more revenue.
- Mix, 100 orders: 100 x 20 + 60 x 35 + 30 x 50 = 5,600, so AOV = 56 and there are 1.9 units per order.
When to use it
Use AOV to size a shop's revenue per order before and after bundles, upsells or a free-shipping threshold. It pairs with conversion rate: revenue per visitor is conversion rate times AOV.
Another example
12,600 of revenue from 280 orders gives an AOV of 45. An 8% lift takes it to 48.60 and adds 280 × 3.60 = 1,008 of revenue, assuming the same number of orders.
Common mistakes
- Mixing gross and net figures. Decide whether shipping, tax and refunds are in revenue, and keep that choice constant month to month.
- Counting one customer's split shipments as several orders.
- Celebrating a higher AOV when a discount used to get it cut your margin. Check profit per order too.
How it differs
AOV is revenue per order. Customer lifetime value adds repeat purchases and margin over time, and the profit margin calculator shows what part of each order you keep. This page does not model conversion or traffic.
Frequently asked questions
How do you calculate average order value?
Divide total revenue by the number of orders. 5,000 of revenue from 100 orders gives an AOV of 50.
How do I use the product mix?
Enter the price and units sold for up to five products and the number of orders. With 100 units at 20, 60 at 35 and 30 at 50, revenue is 2,000 + 2,100 + 1,500 = 5,600, so across 100 orders the AOV is 56 and each order holds 1.9 units.
How much is an AOV increase worth?
With the same number of orders, extra revenue is orders x the increase in AOV. Lifting a 50 AOV by 10% to 55 across 100 orders adds 500 of revenue, the same 10% as the revenue itself.
What is a good AOV?
There is no universal figure. It depends on your products and market, so compare against your own past months and against your margin, not against other stores.
How can I raise AOV?
Common ways are bundles, free-shipping thresholds, upsells and cross-sells. Check that the extra revenue also adds profit, because discounts used to lift AOV can cut your margin.
How do I calculate average order value in Excel or Google Sheets?
Use =SUM(revenue range) / COUNT(order IDs), or =SUMPRODUCT(price, units) / orders for a product mix. 12,600 of revenue over 280 orders gives 12,600 / 280 = 45. Make sure refunds and cancelled orders are handled the same way in both numbers.
What is the difference between AOV and customer lifetime value?
AOV measures one order; customer lifetime value measures what a customer is worth across all orders over time. A customer with a 60 AOV who orders 3 times a year for 4 years brings 720 of revenue, or 288 of profit at a 40% margin. AOV is one input to that figure.
Should average order value include shipping and tax?
Most stores report AOV on product revenue after discounts, excluding tax, and either include or exclude shipping consistently. Including tax makes AOV rise and fall with tax rules, which hides real changes in what customers buy. Pick one definition and write it down so month-to-month comparisons stay fair.