Free Delivery Threshold Calculator

It is the order value above which you can absorb the delivery cost yourself and still keep a minimum margin. Offering free delivery above this point is safe; offering it below it means the delivery cost eats into, or wipes out, your profit. The threshold turns a marketing offer into a controlled, profitable one.

Threshold = (delivery cost + minimum margin to protect) / margin %. The idea is that the extra margin earned on a larger basket has to cover both the delivery cost you are giving away and the minimum profit you still want to keep on the order.

Because only your margin percentage of each extra euro of order value is actually profit available to absorb the delivery cost. If your margin is 35%, you need roughly €1 of extra order value for every 35 cents of cost you want to cover, so dividing by 0.35 scales the figures up to the order value required.

Free delivery above a sensible threshold is a powerful lever to push average order value up, because customers add items to reach it. The risk is offering it on small orders where it destroys margin. This calculator lets you set the threshold high enough that the offer pays for itself through bigger baskets.

Use your real cost per delivery: either the platform commission on the order or, for an in-house fleet, the figure from the own delivery cost calculator. The more accurate the delivery cost, the more reliable the threshold.