# Average Order Value (AOV) Calculator

Page: https://alidemirbas.com.tr/en/calculators/aov

Use this AOV calculator: enter total revenue and the number of orders to get your average order value for the period.

**How to calculate average order value**

`AOV = Total revenue ÷ Number of orders`

1. Pick the period and the revenue definition: with or without tax, shipping and refunds. Use the same one every time.
2. Count the completed orders in the same period. An order with three items is still one order.
3. Divide revenue by the number of orders. The result is in the same currency as the revenue.

`$45,000 revenue ÷ 900 orders = $50.00 AOV`

## What is average order value (AOV)

Average order value, or AOV, is the average amount of revenue a store collects per completed order. You get it by dividing total revenue by the number of orders in the same period. Ecommerce platforms also call it average basket size or revenue per order, and all three names describe the same division. An average order value calculator does nothing more than that division, but the numbers you feed it decide what the result means.

AOV is an order-level metric. It tells you how big a typical order is. It does not tell you how often a customer comes back or what the whole relationship is worth. A customer who spends $30 every month brings in $360 over a year, more than one who spends $120 once, even though the second one has the higher order value. That question belongs to [customer lifetime value](https://alidemirbas.com.tr/en/calculators/ltv).

Order size and profit can also move apart. An order padded with a low-margin add-on raises AOV while barely moving profit, and a free-shipping threshold can lift the average while the extra shipping cost eats the gain. When the real question is how much each order leaves behind, read AOV next to [gross margin](https://alidemirbas.com.tr/en/calculators/gross-margin).

> An AOV can only be compared with another AOV built from the same revenue definition and the same order count.

## What counts as revenue: AOV in Shopify, GA4 and your books

The AOV formula is always revenue divided by orders, but tools disagree on what revenue means. The table below lists the revenue definitions you will meet in store platforms, GA4 and accounting, and how each one shifts the result. Pick one before you compare months, channels or tools. The average order value calculation itself is simple, so the differences come from the input.

| Revenue definition | What it includes | Effect on AOV | Where you see it |
| --- | --- | --- | --- |
| Order total | Products, tax and shipping, after discounts | Moves with tax rates and shipping fees | Payment provider and order exports |
| Gross sales minus discounts | Product revenue after discounts, before later adjustments | Tracks what customers paid for products | Shopify's AOV since January 2023 |
| Gross purchase revenue | All purchase values, refunds not subtracted | Higher than the net figure when returns are common | GA4 gross purchase revenue |
| Purchase revenue | Purchase values minus refunds | Falls when refunds rise | GA4 purchase revenue |
| Net sales in accounting | Revenue after returns, discounts and tax | Closest to what the business keeps | Finance and accounting reports |

Shopify changed its AOV definition in January 2023 from an order's total sales value to gross sales minus discounts. The new definition leaves out adjustments made after the order was created ([Shopify changelog](https://changelog.shopify.com/posts/your-average-order-value-now-has-a-new-definition-in-shopify)). Google Analytics 4 reports gross purchase revenue and purchase revenue as separate metrics, and only the second one subtracts refunds ([GA4 dimensions and metrics](https://support.google.com/analytics/answer/9143382)). So the AOV in your store admin and the one you build from GA4 data can differ for the same week while both are correct for their own definition. For your own reporting, product revenue after discounts and refunds, before tax and shipping, is the steadiest average order value formula input, because it moves only with what customers buy.

The order count needs the same care. The unit is the order itself: a basket with three products is one order, and a customer who buys twice in a month adds two. Leave canceled and test orders out of the count whenever you leave their revenue out of the revenue figure.

Monthly and yearly figures follow the same rule. A monthly AOV is that month's revenue divided by that month's orders. For a yearly AOV, divide the year's total revenue by the year's total orders. Averaging twelve monthly AOVs gives a different and less accurate number, because a busy December with many orders should weigh more than a quiet February.

## How to read a change in AOV

Suppose monthly AOV rises from $50 to $56. That can come from several places, and only some of them mean customers are buying more. Before you credit a pricing or bundling change, check which of these moved:

- Product mix: a promotion on an expensive item, or a stock-out on a cheap one, changes AOV without any customer changing how much they buy.
- Discount depth: a sitewide discount lowers revenue per order, while a minimum spend for the discount pushes it up. In a monthly figure the two effects can cancel out.
- Revenue definition: a switch from order totals to net revenue, or a platform update like Shopify's, moves AOV with no change in behavior.
- Outliers: one wholesale-sized order in a small month can lift the average noticeably. Look at the median order value too, or remove the outlier, before drawing a conclusion.
- Traffic mix: a campaign that brings in many first-time buyers with small baskets can pull AOV down while total revenue rises.

AOV is one of three factors in ecommerce revenue: sessions × [conversion rate](https://alidemirbas.com.tr/en/calculators/cr) × AOV. When revenue changes, split it into these three to see which one did the work. Raising a free-shipping threshold, for example, can push AOV up while fewer visitors complete an order, and revenue can end up flat.

## When to use AOV

Use it to measure how bundling, pricing, cross-selling or a free-shipping threshold changes basket size, and read it as a trend over months with a fixed revenue definition. It also helps with acquisition planning. AOV multiplied by gross margin gives the gross profit of a typical order. Set that against your [customer acquisition cost](https://alidemirbas.com.tr/en/calculators/cac) to see whether a first purchase pays for the customer.

## Where AOV misleads

Mixing gross and net revenue between periods moves AOV while customer behavior stays the same. A few very large orders can lift the average while the typical customer spends what they always did. A rising AOV is also good news only when margin and conversion rate held up alongside it.

## Frequently Asked Questions

### What is AOV (average order value)?

AOV, short for average order value, is the average revenue a business collects per completed order in a given period. It is calculated as total revenue divided by the number of orders, so $45,000 of revenue from 900 orders gives an AOV of $50. Average basket size and revenue per order are other names for the same calculation. AOV does not show how often customers buy or how many visitors buy at all, which are questions for purchase frequency, lifetime value and conversion rate.

### How do you calculate average order value?

Divide total revenue by the number of orders in the same period: AOV = Revenue ÷ Orders. For example, $45,000 ÷ 900 orders = $50.00. Here is how to calculate AOV for longer periods: for a year, divide the year's revenue by the year's orders instead of averaging twelve monthly AOVs. Months with more orders should carry more weight. Both figures need the same scope. If your revenue excludes canceled orders, exclude them from the order count too. If it is net of refunds, say so in the report.

### Should AOV include tax, shipping and refunds?

There is no single rule, so choose once and stay consistent. Including tax and shipping makes AOV look higher and lets a change in shipping fees or tax rates move it. Product revenue after discounts, before tax and shipping, is the steadier basis because it moves only with what customers buy. It is also close to Shopify's current definition of gross sales minus discounts. Refunds are the bigger choice: GA4's purchase revenue subtracts them, while gross purchase revenue keeps them in. Whichever you pick, write the definition next to the number.

### What is the difference between AOV and LTV?

AOV measures the average revenue of a single order. LTV, customer lifetime value, measures what one customer is worth across every order over the whole relationship. A customer with a $30 AOV who orders every month brings in more revenue over a year than one with a $120 AOV who orders once. AOV guides basket-level decisions such as bundles, upsells and shipping thresholds. LTV guides how much you can afford to spend to win a customer, and you can estimate it with the [LTV calculator](https://alidemirbas.com.tr/en/calculators/ltv).

### What is a good average order value?

There is no universal good AOV. It depends on price point, product category and what a typical basket contains: $50 is low for a furniture store and high for a shop selling phone cases. Published benchmarks mix stores with very different products and revenue definitions, so they say little about your own store. The most useful comparison is your own AOV for the same channel and season last year, built from the same revenue definition. Read it next to conversion rate and gross margin before calling it good.