Canonical formula calculator
AVERAGE ORDER VALUE
How much the average customer spends per order — and where you have the most leverage to grow revenue without finding new customers.
Worked example
How the number is worked out
A coffee roaster selling online. Last month they shipped 80 orders.
Starting from
Working
Every order is worth about $69 on average. That is the number a shipping charge, a discount code or a free-delivery threshold has to be weighed against — a $10 offer is a seventh of the order.
What this tells you
Average Order Value is the simplest revenue lever in any transactional business. It tells you the average dollar amount per order across all your sales. Growing AOV by 10% is mathematically equivalent to growing orders by 10% — but it often costs nothing in marketing spend.
When to use it
Track AOV monthly. Watch the trend across promotions, new product launches, and seasons. Use it to decide whether to focus on getting more customers or getting more from each customer. If AOV is climbing, focus on volume. If AOV is shrinking, fix the offer.
What it doesn’t tell you
AOV is an average — it hides distribution. A $100 AOV could be everyone buying $100, or 90% buying $50 and 10% buying $550. Pair AOV with order distribution (median, percentiles) to understand who you are actually selling to.
Reckon it, don’t just calc it
A calculator gives you today’s number. Reckon takes your plan to make your own money and checks it against what’s real — your margin, your price, what it takes to hit the take-home you want. No AI, no guessing — the same input always gives the same answer.