Average Order Value Calculator
Calculate your average order value from total revenue and number of orders to better understand sales performance.
Overview
The Average Order Value Calculator helps you measure how much revenue you earn per customer order. Enter your total revenue and number of orders, and optionally include cost of goods sold and marketing spend to get a broader view of order profitability and efficiency.
How it works
Average order value is calculated by dividing total revenue by the number of orders. If you add cost of goods sold, the calculator also estimates gross profit and gross margin. If you include marketing spend, it calculates the average marketing cost per order by dividing total spend by the number of orders.
How to use this calculator
- 1Enter your total revenue for the period you want to analyze.
- 2Add the number of completed orders from the same period.
- 3Enter your cost of goods sold if you want to see gross profit and margin.
- 4Enter marketing spend if you want to estimate marketing cost per order.
- 5Review the calculated average order value and supporting metrics.
Example Calculation
Total Revenue
$10,000
Number of Orders
250
Cost of Goods Sold
$6,000
Marketing Spend
$1,500
Average Order Value
$40.00
If your store made $10,000 from 250 orders, your average order value would be $40.00. With $6,000 in cost of goods sold, gross profit would be $4,000 and gross margin would be 40.0%. If marketing spend was $1,500, the average marketing cost per order would be $6.00.
Frequently asked questions
What does average order value mean?
Average order value is the average amount customers spend each time they place an order. It is calculated by dividing total revenue by total orders.
Why is average order value important?
It helps you understand customer spending behavior and measure the impact of pricing, bundles, upsells, and promotions.
Should refunds be included in revenue?
For a more accurate result, use net revenue after refunds and cancellations if that matches how you track performance internally.
What period should I use for this calculator?
You can use any period, such as a day, week, month, quarter, or year, as long as all inputs cover the same time frame.
Does this calculator include profit?
It can estimate gross profit and gross margin if you enter cost of goods sold, but it does not account for all business expenses unless you add them separately to your analysis.
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Assumptions and warnings
Assumptions
- All values relate to the same time period.
- Revenue and order count include completed orders only.
- Gross profit is calculated using revenue minus cost of goods sold only.
- Marketing spend per order is a simple average and does not attribute spend by channel or campaign.
- Results are estimates and should be reviewed alongside your wider business metrics.