How to use the average order value calculator
- Enter the revenue for a period, such as a month or a quarter, and the number of orders placed in that same period.
- Decide what revenue includes before you start. Some stores count shipping and tax, some do not, and some subtract refunds. Use the same choice every time so the numbers can be compared.
- Open the advanced options to add the items sold. The tool then shows the items per order and the average price per item.
- To see a change over time, enter the revenue and orders from an earlier period as well. The result shows the earlier average order value and how much it moved.
Formula
Average order value = revenue / number of orders
Items per order = items sold / number of orders
Average price per item = revenue / items sold
Change = (new value - earlier value) / earlier value x 100
Orders means separate purchases, not customers and not items. A customer who buys twice in the period counts as two orders.
A store with $12,000 over 300 orders
A shop took $12,000 in revenue from 300 orders last month. Average order value = $12,000 / 300 = $40.00. If those orders contained 900 items, that is 3 items per order and $13.33 of revenue per item ($12,000 / 900).
The month before, the shop took $9,000 from 300 orders, which is $30.00 per order. The average order value rose from $30.00 to $40.00, a change of 33.33% (the $10.00 gain divided by $30.00).
What the number tells you and what it does not
Average order value is one division, but it hides how orders are spread. A shop with ten orders of $10 and one order of $900 has the same average as a shop where every order is about $90. If your orders vary a lot, look at the smallest and largest orders too.
Whether a value is good or poor depends on your products, your margins and your costs. A $40 order can be very profitable for one business and a loss for another once shipping and fees are paid. For that reason this page does not offer a benchmark. Compare your own figure from one period to the next.
Keeping the comparison fair
Use the same period length and the same definition of revenue for every comparison. A sale event, a price change or a shift in the mix of products can move the average without any change in customer behavior. When revenue and orders both change, the average order value is the result of both, so check them separately.
If you want to see how the average order value feeds into long term value per customer, the customer lifetime value calculator uses it together with order frequency and margin. To track how sales move between periods, use the sales growth rate calculator.
Assumptions and limits
- Revenue and orders cover exactly the same period and the same sales channels.
- Every order is counted once, whether it contains one item or many.
- The tool divides what you enter. It does not remove refunds, shipping or tax unless you leave them out of the revenue figure yourself.
- Results are rounded to the cent for display.
Frequently asked questions
How do I calculate average order value?
Divide your total revenue for a period by the number of orders in that period. For $12,000 in revenue from 300 orders the result is $40.00. Use the same period for both numbers.
Should shipping and tax be in the revenue figure?
That is your choice, and it should match how you want to use the result. If you plan to compare product revenue only, leave shipping and tax out. Whichever you pick, keep it the same from one period to the next.
What is the difference between average order value and revenue per customer?
Average order value divides by orders, while revenue per customer divides by customers. A customer who orders three times adds three orders and one customer, so revenue per customer is higher than the order value.
Can I compare my result with another store?
You can, but it tells you little. Prices, product mix and margins differ widely, so the more useful comparison is your own result from last month or last year.