METHOD & GUIDANCE
How this calculation works
Keep every input on the same time basis—for example, one month or one financial year—and do not mix cash figures with accrual figures. 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 the average order value 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.
Which period should I use?
Keep every input on the same basis—for example, one month or one financial year. Use current figures first, then save a cautious scenario for comparison.
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.
Popular small-business decision paths
- Build the next cash-flow forecast
- Measure how quickly invoices become cash
- Estimate how long available cash will last
Method reviewed 5 August 2026. Figures are illustrative and calculated locally in your browser. Official sources are linked where a rule or obligation affects how the result should be used. Read the Tool IQ calculation standard for our checking process, limitations and corrections policy.