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Free shipping threshold calculator

Enter what shipping costs you by zone group, your gross margin and the part of that margin you will give to the carrier. The calculator returns a threshold and shows how hard the far zones are hit at that line.

By Log Studio Lab · Updated

Near zones

Any weights; only the ratio counts.

In dollars, from your carrier invoices.

Middle zones

Any weights; only the ratio counts.

In dollars, from your carrier invoices.

Far zones

Any weights; only the ratio counts.

In dollars, from your carrier invoices.

A percent from 1 to 100.

A percent from 1 to 100. This is your decision, not a benchmark.

Blended shipping cost: 8.30 dollars

Free shipping threshold: 60.36 dollars

  • Near zones: shipping takes 18.1 percent of the margin on an order at the threshold.
  • Middle zones: shipping takes 24.1 percent of the margin on an order at the threshold.
  • Far zones: shipping takes 33.1 percent of the margin on an order at the threshold.

How the math works

Threshold T = S ÷ (k × m), where S is the blended shipping cost you absorb, m is your gross margin and k is the part of margin you will give to shipping.

  • S is what you pay per parcel, from your own carrier invoices, weighted by the share of orders to each zone group.
  • k is a decision, not a benchmark. The page starts at 25 percent only to make the arithmetic concrete.
  • Fees outside your carrier bill, such as a state delivery fee, are not included.

The derivation, with worked examples, is in Free Shipping Threshold: The Formula. Every figure the calculator shows comes from the numbers you type; nothing is a benchmark.

Sources

Build this offer from the “Shipping discount tiers” template.

Requires: Growth plan or higher.

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