# AOV Calculator

- **URL:** https://codeasystem.com/calculators/marketing/aov-calculator/
- **Category:** marketing
- **Description:** Find average order value from total revenue and order count, with a quick projection for planning targets.
- **Primary output:** Average order value: $50.00

## Inputs
- Total revenue (name: `revenue`, type: number, prefix: $, example: 45000)
- Orders (name: `orders`, type: number, example: 900)

## Outputs
- Average order value: $50.00
- Orders counted: 900
- Revenue from 100 orders at this AOV: $5,000.00

## Formula / methodology
```
AOV = total revenue ÷ number of orders
```

Average order value spreads period revenue evenly across orders placed. It deliberately ignores distribution; one whale order among hundreds of small ones still shifts the mean; making it a planning lever rather than a customer portrait.

## Assumptions & limitations
- Revenue excludes taxes; decide once about shipping and stay consistent.
- Refunded orders are typically excluded from both sides of the ratio.
- Same reporting window for revenue and orders.

## How to use
1. **Pull net revenue**; Use product revenue excluding tax; treat shipping consistently month to month.
2. **Count the orders**; Total completed transactions in the identical period, with refunds handled the same way as revenue.
3. **Track the trend**; AOV matters as movement: rising baskets suggest bundling works, falling ones flag discount dependence.

## Example
Turning $45,000 of revenue across 900 orders means a $50.00 average order value; about $5,000 of revenue per hundred orders at this rate.

Result for these inputs:

```
Average order value: $50.00
```

## About this calculator
### Why AOV is the quiet profit lever

Acquisition costs are largely fixed per order, so every extra dollar of basket size flows disproportionately to margin. Lifting AOV 10% often beats winning 10% more customers; at far lower cost.

### The proven AOV playbook

Free-shipping thresholds set just above current AOV, bundles priced marginally under separate purchase, and post-checkout upsells all reliably raise basket size without touching traffic spend.

### Read AOV alongside CAC

AOV only means something against acquisition cost and repeat rate. A $90 AOV with a $120 CAC is a losing machine; a $35 AOV with loyal repeat buyers can be a goldmine.

## FAQs
### What is a good AOV?

There is no universal number; groceries might run $50, fashion $90, furniture $800. Judge yours against category norms and, more importantly, its trajectory over time.

### Does AOV include shipping charges?

Purists exclude it since shipping barely carries margin. Whatever you choose, keep it consistent so trends stay readable.

### Can discounts raise AOV?

Yes; thresholds like $15 off over $150 push buyers to add items. Just verify the discount costs less than the margin those added items contribute.

## Related calculators
- [Profit Margin Calculator](https://codeasystem.com/calculators/business/profit-margin-calculator/)
- [Customer Lifetime Value Calculator](https://codeasystem.com/calculators/business/customer-lifetime-value-calculator/)
- [CAC Calculator](https://codeasystem.com/calculators/business/cac-calculator/)

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Last updated: 2026-08-23 · Version: 1.0.0 · [HTML version](https://codeasystem.com/calculators/marketing/aov-calculator/)