AOV Calculator

AOV (average order value) is the average amount of revenue a business collects per completed order, calculated as total revenue divided by the number of orders over the same period. A $45,000 revenue period across 900 orders gives an AOV of $50. It's also known as average basket size or revenue per order, the same calculation under different names. AOV describes order-level revenue only; it doesn't measure profit, customer value, or how often a customer buys. Use it to track whether the average transaction is growing or shrinking over time, or to compare channels, campaigns and segments.

Divide total revenue by the number of orders: AOV = Revenue ÷ Orders. $45,000 in revenue from 900 orders gives 45,000 ÷ 900 = $50.00. Both figures need to come from the same period and the same order definition: revenue that includes tax or shipping divided by an order count that doesn't (or the reverse) produces a number that isn't really comparable across periods. Refunded and cancelled orders are the most common inconsistency: decide once whether they count toward both the revenue and the order total, and apply that same rule every time AOV gets calculated, so period-over-period changes reflect real shifts in behavior rather than a shift in accounting treatment.

'Average basket size' and 'revenue per order' are the same calculation as AOV (total revenue divided by number of orders) under different names, depending on the platform, industry or region. E-commerce platforms tend to say 'average basket size'; B2B and subscription reports more often say 'revenue per order'. The label changes nothing about the formula. What is worth checking is whether refunds, tax and shipping are handled the same way as in your other AOV figures.

AOV measures the average revenue from a single completed order. LTV (lifetime value) measures the total value a customer generates across every order they ever place, over their entire relationship with the business. A customer with a modest AOV who orders every month can be worth far more in LTV than a customer with a high AOV who orders once and never returns. AOV alone can't distinguish between these two customers, because it only describes what happens inside one transaction, not how many transactions a customer goes on to make. The two metrics are complementary rather than interchangeable: AOV feeds into some LTV models as one input among several, but it isn't a substitute for measuring lifetime value directly.

There's no universal good AOV. It depends on price point, product category and basket composition, which vary enormously between, say, a fast-fashion retailer and a furniture store. A $50 AOV is unremarkable for one category and would be an exceptional outlier for another selling much cheaper items. AOV is also silent on profitability: a rising AOV built on low-margin add-ons can leave a business worse off than a lower, higher-margin AOV. Track AOV against your own history instead of a published benchmark: a change for the same catalog and customer base means something; a gap against an unrelated industry average usually doesn't.