What Is Average Order Value (AOV)?
Average Order Value (AOV) is the average dollar amount customers spend per order. It is the core ecommerce profitability input and sits alongside conversion rate as the two biggest levers for paid media efficiency. Raising AOV lifts ROAS with no additional ad spend.
Why is calculating AOV important?
- Key input into break-even ROAS, CAC, and impression share opportunity calculations.
- A direct lever for paid media profitability.
- Supports bundling, pricing, and upsell decisions.
- Reveals whether growth is coming from volume or basket size.
How to calculate AOV
AOV = Total Revenue / Total Orders.
1. Pull total revenue for the period.
2. Pull total orders in the same period.
3. Divide.
What is an AOV Calculator?
A calculator that returns your average order value given total revenue and total orders. It plugs into almost every other paid media calculation on this page.
How to use the AOV Calculator?
- Enter total revenue for the period.
- Enter total orders in the same period.
- Click Calculate.
Benefits of using an AOV Calculator
- Fast input for ROAS, break-even, and paid media planning.
- Tracks basket-size changes over time.
- Supports pricing and bundling decisions.
- Flags when growth is order-count-driven vs AOV-driven.
Factors that affect AOV
- Product mix and pricing.
- Bundling and cross-sell offers.
- Shipping thresholds and promotions.
- Discount depth and frequency.
- Traffic source — paid traffic often has lower AOV than organic.
How to raise your AOV
- Add cross-sell and upsell offers at cart and checkout.
- Set a free-shipping threshold slightly above current AOV.
- Bundle complementary products at a modest discount.
- Feature higher-priced products in ads when ROAS allows.
- Test post-purchase upsells to lift revenue per order.
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