AOV Calculator

What Is AOV and Why Does It Matter?

AOV stands for Average Order Value. It tells you how much revenue you generate per order, on average. The formula is simple: total revenue divided by total orders. But the impact is huge, because AOV connects the dots between marketing performance, conversion behavior, merchandising, and profitability.

If two stores have the same traffic and the same conversion rate, the store with the higher AOV usually makes more revenue. And if margins are similar, the higher AOV store can often afford higher acquisition costs while staying profitable. This is why AOV is one of the most used metrics in eCommerce reporting and why it shows up in so many weekly dashboards.

How to Calculate AOV

The basic calculation is: AOV = Revenue ÷ Orders. Revenue is the money attributed to those orders, and orders are the number of completed purchases in the same time period. If your store makes 50,000 in revenue from 1,000 orders, your AOV is 50.

The key is to keep the definition consistent. If your revenue includes tax and shipping one week but not the next, your AOV will swing even if customer behavior stays the same. If refunds are processed after the reporting window, “gross” AOV can look artificially high. That’s why many teams also calculate an adjusted AOV.

Revenue vs Net Sales: Which One Should You Use?

Different platforms report revenue differently. A shopping cart system might show “gross sales” that include tax, shipping, and discounts. Your accounting system might show “net sales” after discounts and returns. Marketing dashboards might show attributed revenue with tracking limitations. None of these are wrong, but they answer slightly different questions.

Use gross-style AOV when

• You want to understand checkout totals (what customers paid at the moment of purchase).
• You are analyzing upsells, bundles, and cart building from a customer experience perspective.
• You compare performance inside the same platform with consistent definitions over time.

Use net-style AOV when

• You want a safer view for profitability, especially when refunds and discounts are meaningful.
• You set CPA targets or break-even ROAS targets and want your “value per order” to match cash reality.
• You operate in categories with high returns and you want to normalize performance.

The Adjusted AOV tab is built for this decision. You can exclude tax and shipping, subtract discounts and refunds, and even include optional deductions like chargebacks. The goal is not to find one universal definition, but to choose a consistent one that fits your planning.

Adjusted AOV: A More Realistic Metric for Planning

Adjusted AOV helps answer: “How much revenue do we actually keep per order after common deductions?” That matters if you run frequent promotions, offer generous discounts, or operate in a market with high returns. A store can have a healthy-looking gross AOV while net sales per order are much lower.

For example, suppose your gross AOV is 80, but you discount heavily and refunds are high. Your adjusted AOV might be 65. That difference changes what you can afford to pay per acquisition, and it changes how you evaluate ad performance. Over time, adjusted AOV can become the more stable metric for budgeting and forecasting.

How AOV Connects to ROAS, CPA, and Profit

AOV does not measure profit, but it influences profitability because it affects how much revenue (and potentially gross profit) each order produces. When you know AOV and margin, you can estimate the allowable marketing cost per order.

ROAS and CPA are the most common marketing efficiency metrics:

• ROAS is revenue ÷ ad spend.
• CPA is ad spend ÷ conversions (orders).

AOV links them. If your AOV is 60 and your ROAS is 3.0, then your CPA is roughly 20 (because 60 ÷ 3.0 = 20). If your AOV rises to 75 at the same ROAS, your CPA can rise too without harming ROAS. That’s why AOV improvements can be a powerful lever: you can scale spend while maintaining profitability targets, especially if the AOV lift comes from higher basket size instead of higher discounting.

What Is a “Good” AOV?

AOV benchmarks vary widely by niche. A beauty store might see AOVs in the 30–70 range, while high-end apparel or electronics can be much higher. The most useful comparison is usually internal: your AOV this month vs last month, or your AOV by channel, device, and landing page type.

A better way to think about “good AOV” is: does it support your business model?

• Can your current AOV support your shipping and fulfillment costs?
• Does your margin at that AOV support your paid acquisition CPA?
• Does AOV rise during promotions because of bundles, or fall because of discounts?

Use the Target AOV tab to flip the question into planning: “If we want 100,000 revenue in 30 days, how many orders and what AOV do we need?”

How to Increase AOV Without Hurting Profit

Increasing AOV is one of the fastest ways to grow revenue without needing proportionally more traffic. But not every AOV strategy is healthy. If your AOV rises only because you discount less, you may reduce conversion. If it rises because you push more expensive items with low margin, your profit might not improve. The best strategies raise AOV while keeping contribution strong.

Bundling and kits

Bundles encourage customers to buy complementary items together. They also simplify decision-making and can increase perceived value. A smart bundle often lifts AOV without needing deep discounts, because it solves a complete use case.

Free shipping thresholds

A well-chosen free shipping threshold nudges cart size upward. The trick is to set the threshold just above your current AOV, so shoppers only need one small add-on to qualify. If the threshold is too high, shoppers ignore it.

Upsells and cross-sells

Upsells offer a better version of what a shopper already wants. Cross-sells suggest helpful add-ons. Both work best when the offer is relevant, simple, and timed well (product page, cart, checkout, post-purchase). Measuring segment AOV can help identify where these tactics work best.

Quantity breaks

“Buy 2, save 10%” or “Buy 3, get 1 free” can lift AOV in replenishable categories. But it can also create hidden costs if discounts become too large. Adjusted AOV is useful here because it makes the discount impact visible.

Segment AOV: Where Your Real Levers Hide

Blended AOV is a single number, but your store often contains multiple different buyer behaviors. New customers may buy one item. Returning customers may buy multiple items. Email traffic may have higher intent than paid social traffic. Mobile sessions may convert at a lower basket size than desktop sessions. Segment AOV helps you see these differences clearly.

The Segments tab is built for practical analysis. Add rows for channels (Meta, Google, Email), campaigns, or countries. You’ll get AOV per segment and a blended AOV based on totals. This is helpful when you’re deciding where to scale, where to improve merchandising, or where to fix traffic quality.

Common Mistakes When Using AOV

Mixing time periods

Revenue and orders must match the same period. If revenue includes delayed refunds or subscription renewals but orders only include first-time purchases, your AOV becomes inconsistent. Align definitions first, then track changes.

Confusing AOV with LTV

AOV is a per-order metric. LTV (lifetime value) is per-customer over time. Subscription and repeat purchase businesses often have modest AOV but strong LTV. When deciding allowable CPA, use the metric that matches your payback horizon.

Raising AOV through heavy discounting

Discounts can increase cart size, but they reduce net sales. If you celebrate higher AOV while net revenue per order stays flat, you may be masking margin erosion. Adjusted AOV and profit metrics keep this honest.

What If My AOV Drops?

AOV drops can come from traffic mix, seasonal behavior, product availability, or pricing changes. Before reacting, check segments. If only one channel’s AOV dropped, the issue might be targeting or creative mismatch. If every channel dropped, the issue might be a merchandising change, a pricing change, or a product mix shift. Look at returns and discounts too: a drop in adjusted AOV can signal higher refunds or heavier promos.

How Often Should You Track AOV?

Weekly tracking is a common cadence because it smooths daily noise but reacts quickly enough for merchandising and marketing decisions. During sales and peak seasons, daily tracking can be useful, especially when shipping thresholds or promotions change. The key is to use the same definition each time and to segment when you need to explain changes.