Free tool · For DTC brands on Shopify · $1M–$30M/yr

Free Shipping Threshold Calculator

Offer free shipping over the wrong minimum order value and you quietly hand back your margin on every order. Enter your own margin and shipping cost and see the threshold that breaks even and the one that still keeps the profit you want.

Your numbers

Adjust any field. Everything updates instantly. Nothing is sent anywhere — this runs entirely in your browser.

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Your thresholds

Break-even threshold
$0
Free shipping loses money below this order value.
Profit-protecting threshold
$0
Order value that still keeps your target profit.

At the profit-protecting threshold

Per free-shipping order at that valueAmount
Product gross profit Threshold order value × your margin % $0
Shipping you absorb The label + packaging you pay so the customer pays $0 −$0
Profit you keep on that order $0
Read this as your own estimate, not a rule. Both thresholds come only from the numbers you typed, using one transparent formula: threshold = (shipping + target profit) ÷ margin %. A common merchandising heuristic is to set the visible threshold roughly 1530% above your AOV to nudge bigger baskets — that's a rule of thumb (approximate, adjust to your data), not a margin guarantee. Real orders vary in margin and shipping, so treat these as a starting point.

How the math works

Free shipping is affordable on an order only when the product profit on that order covers the shipping you absorb. At order value V with margin m, product gross profit is V × m. To keep a target profit P after paying shipping S, you need V × m − S ≥ P, which rearranges to:

threshold = (S + P) ÷ m

Set P = 0 and you get the pure break-even threshold: the order value where free shipping neither makes nor loses money. Below it, every "free shipping" order costs you.

Why a wrong threshold is a silent leak

The dangerous case isn't the threshold you set on purpose — it's the one that quietly stops matching reality. Carrier rates creep up, your real shipping cost drifts above what you modeled, or a promo drops the threshold and nobody re-checks the margin. None of that throws an alert; you find it at month-end when the profit isn't there.

Ops Monitor connects to your Shopify and Stripe with read-only API keys and watches for the silent operational failures that erode the margins this calculator assumes — payout and settlement gaps, oversells, orders stuck past SLA, broken syncs — then alerts you by email or Slack the moment one shows up. It's read-only: it never writes to your store and never moves money. It detects and alerts — it does not prevent or guarantee anything.

See for yourself

Start monitoring in minutes with read-only keys — $149/month, self-serve, cancel anytime.

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