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
- Enter Current product price, Shipping currently charged and Your actual shipping cost.
- Enter Gross margin on product and Orders per month (today).
- Estimate the Expected order lift from free shipping and the Price increase to absorb shipping.
- 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
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 increase | Profit per order with free shipping | Order lift needed to break even |
|---|---|---|
| $0 | $15.00 | 40.0% |
| $2 | $17.00 | 23.5% |
| $3 | $18.00 | 16.7% |
| $4 | $19.00 | 10.5% |
| $6 | $21.00 | 0% |
Frequently asked questions
Does free shipping increase sales?
What free-shipping threshold should I use?
How much should I raise prices to offer free shipping?
Is a free-shipping threshold better than free shipping on everything?
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Last reviewed: Built for: United States, United Kingdom, Canada, Australia Part of Ecommerce & Sellers