METHOD & GUIDANCE
How this calculation works
Enter figures from the same period and on a consistent VAT-inclusive or VAT-exclusive basis. Tool IQ recalculates every output immediately; nothing you enter is saved or sent to us.
How to use the result
Use AOV with margin, repeat order rate and acquisition cost; a larger basket can still destroy value if discounts or fulfilment costs rise faster.
Worked example
The opening 60,000 revenue across 1,200 orders produces a 50 average order value before margin and repeat purchases are considered.
Common mistakes
- Dividing by items rather than orders.
- Including tax or shipping inconsistently across periods.
- Treating higher AOV as higher profit without checking margin.
Frequently asked questions
Is this calculator free?
Yes. It requires no account and stores no calculation inputs.
Can I use the answer for a formal filing?
No. It is a planning estimate, not accounting, tax, legal or investment advice. Confirm material decisions with a qualified professional.
Should I include VAT?
Use a consistent basis throughout. Businesses that recover input tax commonly model net figures; consumer-facing prices are often considered gross.
Continue the decision
- Customer Acquisition Cost Calculator — Compare acquisition cost with estimated customer value.
- Profit Margin Calculator — See profit, margin and markup from one sale.
Method reviewed 26 July 2026. Figures are illustrative and calculated locally in your browser.