Average Order Value Calculator

Revenue for the period

Number of orders

Number of customers

Result

Average order value$3,000.00
Orders per customer1.5
Revenue per customer4,500
Revenue at +10% order value$990,000.00
Revenue$900,000.00
Orders300

The cheapest way to grow revenue

Average order value for a period, orders and revenue per customer, and what the same period would have earned with the order value ten percent higher.

Average order value is revenue divided by orders. It is an underrated metric: lifting it ten percent is almost always cheaper than lifting traffic ten percent, and the effect on revenue is identical.

Orders per customer belongs beside it. An order value of 3,000 with three orders per customer and with one describe two entirely different businesses, even though the headline metric matches.

What this calculator shows

Average order value for the period
Orders and revenue per customer
What revenue would be with the order value ten percent higher

What to keep in mind

Based on revenue rather than profit: pushing order value with discounted bundles can lift the figure and depress margin.
Returns should be deducted from revenue, or the average comes out overstated.

FAQs

How do I raise average order value?

Related items at checkout, bundles with a saving, free delivery above a threshold, upgrades to a better version. The delivery threshold works best, set a little above the current average.

Mean or median order value?

With a few very large orders the mean is dragged upward and stops describing a typical buyer. The median is more honest in that case.

Why does order value drop during a sale?

Buyers come for one discounted item and take only that. It is fine if the customer count rises and some of them return at full price.

How is order value linked to LTV?

LTV is order value times purchase frequency times lifespan times margin. Raising order value lifts LTV proportionally, and with it the acquisition cost you can afford.

Worked example

A month in an online shop

Input: 900,000 revenue, 300 orders, 200 customers

Output: Average order 3,000, 1.5 orders per customer

Note: A ten percent lift gives 990,000 without a single new customer. The same increase through traffic would mean winning twenty customers and paying for them.

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Average Order Value Calculator

Result

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