Free Shipping Profit Calculator

Decide whether free shipping makes you more money by comparing monthly profit with and without it, plus the break-even order lift.

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What is the Free Shipping Profit Calculator?

A free shipping profit calculator compares two scenarios: charging shipping today versus offering free shipping with a small price increase and the extra orders you expect. Profit per order now = price × margin + shipping charged − shipping cost; with free shipping it is price × margin + price increase − shipping cost, multiplied across your higher order count.

Example: a $40 product at 55% margin, $6 charged against a $7 label, 400 orders a month. Free shipping with a $3 price rise earns $18 instead of $21 per order, so you need 16.7% more orders to break even; a 15% lift leaves you $120 a month worse off.

How to use the Free Shipping Profit Calculator

  1. Enter Current product price, Shipping currently charged and Your actual shipping cost.
  2. Enter Gross margin on product and Orders per month (today).
  3. Estimate the Expected order lift from free shipping and the Price increase to absorb shipping.
  4. Read which option earns more, the monthly difference, the break-even order lift and a suggested free-shipping threshold.

Why use AnyShift's Free Shipping Profit Calculator

Instant resultsNumbers update as you type — no submit button, no page reloads.
Formula shownEvery result shows how it was calculated so you can check the maths.
Editable assumptionsRates, fees and defaults are pre-filled but always adjustable.
Private by designCalculations run in your browser. Nothing is stored or sent.

Popular use cases

  • Deciding whether to switch to free shipping site-wide
  • Testing how much to raise prices to cover postage
  • Setting a free-shipping threshold to lift average order value
  • Comparing a free-shipping promotion with a discount

Break-even order lift by price increase

$40 product, 55% margin, $6 shipping charged today, $7 actual shipping cost:

Price increaseProfit per order with free shippingOrder lift needed to break even
$0$15.0040.0%
$2$17.0023.5%
$3$18.0016.7%
$4$19.0010.5%
$6$21.000%

Frequently asked questions

Does free shipping increase sales?
Usually. Baymard Institute’s checkout research consistently finds extra costs such as shipping are the top reason shoppers abandon carts. The question is whether the extra orders cover the shipping you absorb — the break-even lift tells you.
What free-shipping threshold should I use?
A common approach is about 20–30% above your typical order value so customers add one more item to qualify. The calculator suggests 25% above the current price, or the order value whose margin covers the label if that is higher.
How much should I raise prices to offer free shipping?
Enough that the extra margin plus the order lift covers the label. In the example a $3 rise still needs 16.7% more orders, while raising the price by the full $6 you charge today keeps profit per order unchanged.
Is a free-shipping threshold better than free shipping on everything?
Often, because only larger orders get it and the threshold nudges average order value up. Free shipping on everything is simpler and can convert better for single-product stores where a threshold is hard to reach.

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Last reviewed: Built for: United States, United Kingdom, Canada, Australia Part of Ecommerce & Sellers

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