Free tool
Average Order Value Calculator
Average order value is the quietest lever in ad profitability: it raises your bidding ceiling without a single extra customer arriving.
Average order value is the mean amount spent per order. You get it by dividing revenue by the number of orders over the same period. In advertising it sets what each conversion is worth, and therefore what it is profitable to pay to win one.
The way to your target
How average order value is calculated
Average order value = Revenue ÷ Orders
48,000 € across 600 orders gives an average order value of 80 €.
What that changes on the ad side: at 30 % margin, an 80 € order leaves 24 €, so a break-even CPA of 24 €. Lifting the order value to 100 € takes that margin to 30 €, which is 25 % more acquisition budget on every conversion, without touching a campaign. That is why a rise in order value shows up in the ad account before it shows up anywhere else.
What moves it
- Basket composition more than unit price: a complementary product added to the order weighs more than a price increase, and meets less resistance.
- The free shipping threshold, which mechanically shifts the distribution of orders upward when it sits just above the median basket.
- The channel. A brand audience almost always carries a higher order value than a cold one. A blended figure hides that gap, and the gap is what decides budget allocation.
Frequently asked questions
How do you calculate average order value?
Divide revenue by the number of orders over the same period. For 48,000 € and 600 orders: 48,000 ÷ 600 = 80 €.
Should shipping and tax be included?
What matters most is keeping the same convention over time. To steer advertising, the figure excluding tax and shipping is the most useful one: that is what your margin applies to.
Mean or median order value?
The mean is enough to steer bidding. The median becomes useful when a few very large orders pull the mean upward: it then tells you where the typical order sits, which is where a free shipping threshold belongs.
Order value varying between campaigns?
That is an allocation signal: the campaign bringing the biggest baskets deserves a different target CPA from the one bringing volume.
Grow My Average Order Value
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Théo MaupiléFreelance Paid Media
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