Average order value
AOV Calculator
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AOV = Revenue ÷ Orders
The average amount a customer spends per order. Raising AOV is often the cheapest way to grow, with no extra ad spend needed.
AOV
$77.50
Customers spend an average of $77.50 across 240 orders.
Orders240
Revenue$18,600
What is AOV?
Average order value (AOV) is the mean amount a customer spends per order, calculated as total revenue divided by the number of orders over the same period.
It is one of the most direct growth levers you have: lift AOV and revenue rises with no extra traffic and no extra ad spend.
AOV also feeds bigger metrics. It is an input to lifetime value, and it sets how much each conversion is worth, which in turn shapes the acquisition cost you can afford.
How to calculate AOV
AOV = Revenue ÷ Orders
- Total your revenue. Add up sales over the period you want to measure. The example uses 18,600.
- Count your orders. Count the orders placed in that same period, 240 in the example. Match the date ranges.
- Divide revenue by orders. 18,600 divided by 240 is an AOV of 77.50.
- Compare over time. Track AOV across periods and against acquisition cost, rather than to a fixed target.
Worked example
A store takes 18,600 in revenue across 240 orders in a month.
| Total revenue | $18,600 |
|---|---|
| Number of orders | 240 |
| Result | $77.50 AOV |
Customers spend about 77.50 per order on average. A free-shipping threshold set a little above this often nudges the typical basket higher.
How to improve AOV
- Bundle complementary products so the natural basket is larger.
- Offer a higher tier, larger size or upgrade at the point of sale.
- Set free-shipping or discount thresholds just above your current AOV.
- Recommend relevant add-ons at checkout, where intent to buy is highest.
Frequently asked questions
- What is average order value and how do you calculate it?
- Average order value (AOV) is the mean amount a customer spends in a single order, found by dividing total revenue by the number of orders over the same period. 18,600 in revenue across 240 orders is an AOV of 77.50. Use the same date range for both figures or the average is distorted.
- What is a good average order value?
- There is no universal good AOV, because it depends entirely on what you sell and your price points: a coffee subscription and a furniture store live in different worlds. The useful comparison is your own trend over time and your AOV against your acquisition cost. Rising AOV at a steady cost is the signal that matters.
- Why does AOV matter for ad spend?
- Because a higher AOV means each converted click is worth more, which raises the return on the same ad budget. Lifting AOV is often the cheapest way to grow, since it needs no extra traffic. It also widens the acquisition cost you can profitably afford.
- What is the difference between AOV and revenue per visitor?
- AOV measures the average spend per order, counting only people who bought. Revenue per visitor spreads revenue across everyone who visited, buyers and non-buyers alike. AOV tells you how big a purchase is; revenue per visitor folds in conversion rate as well.
- How do you increase average order value?
- Bundle related products, offer a higher tier or larger size, suggest add-ons at checkout, and set free-shipping or discount thresholds just above the current AOV. Each nudges the typical basket up without you paying for another visit.