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Four hundred orders, 48,000 of sales
The month closed 400 orders for 48,000 of revenue. Those orders held 1,200 items. Average order value is 120. That is 3 items on a typical ticket, at 40 an item.
Revenue in the period: 25% lower
Change revenue in the period to 36,000 while keeping the other example values the same.
Revenue in the period: 25% higher
Change revenue in the period to 60,000 while keeping the other example values the same.
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Quick answer
What does the Average order value calculate?
What is the average revenue on each order? This calculator uses revenue in the period, orders in the period, and items sold in the period to estimate revenue on a typical order immediately in your browser.
With the values currently entered, the result is $120.00 — average order value. It also shows items per order, revenue per item, and orders.
How to use the Average order value
- Replace the example values with your own numbers.
- Review the result and supporting figures as they update automatically.
- Check the formula and assumptions before using the estimate for a decision.
Inputs used
- Revenue in the period
- Orders in the period — entered in orders
- Items sold in the period — entered in items
Average order value formula
Average order value = revenue ÷ orders. Items per order = items sold ÷ orders. Revenue per item = revenue ÷ items sold.
Assumptions
- Average order value is period revenue divided by completed orders. Keep refunds out of revenue if you also drop those orders from the count.
- Items sold is optional context. Type 0 if you only want the order average.
Verify the inputs
Authoritative sources
These sources explain the definitions, factors, or rules behind this tool. Their geographic scope is shown because an official source for one country is not automatically valid somewhere else.
Tells you to compare marketing and sales costs with the revenue those efforts generate, and to keep a path from a visitor to a completed sale.
Beginners’ guide to financial statementsUS Securities and Exchange CommissionScope: General investor education; US sourceWalks an income statement from sales to cost of sales, then to gross profit, operating expenses, and the bottom-line net earnings.
Sources do not endorse Calculum. Check the source date, scope, and your own documents before making a financial, tax, insurance, or reporting decision.
Practical guide
Average order value example and edge cases
Average order value is the typical ticket: period revenue divided by the number of completed orders. SBA asks you to track the revenue a sales path generates. This page reports that revenue per order.
Example: Four hundred orders, 48,000 of sales
The month closed 400 orders for 48,000 of revenue. Those orders held 1,200 items. Average order value is 120. That is 3 items on a typical ticket, at 40 an item.
- Revenue in the period
- 48,000
- Orders in the period
- 400 orders
- Items sold in the period
- 1,200 items
Calculated result$120.00average order value
120 is the ticket, not the item price. If you want visitors times conversion times this ticket, open the conversion funnel calculator.
Example results use the default display profile. The calculator above follows your selected country and units.
How to read the result
- Read the order average first. Then check items per order. A 120 ticket with one item is a different mix from a 120 ticket with six items.
- Keep refunds out of both revenue and the order count, or the average includes tickets you already gave back.
Edge cases worth checking
Shipping and tax are still in revenue
Decide one rule and keep it. If you want merchandise AOV, take shipping and tax off first. If you want cash per checkout, leave them in.
Wholesale and retail sit in the same total
A few large wholesale invoices will lift the average. Split the two channels if you want a typical retail ticket.
What changes the result most
Revenue in the period
Use a current amount for revenue in the period. Include fees or recurring costs that belong in the same figure.
Orders in the period
Keep orders in the period on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Items sold in the period
Keep items sold in the period on the same time basis as the other inputs. Monthly and annual values are easy to mix up.
Try a different scenario
Small changes show whether the answer is stable or sensitive.
Revenue in the period: 25% lower
36,000$90.00average order value
Revenue in the period: 25% higher
60,000$150.00average order value
Orders in the period: 25% higher
500 orders$96.00average order value
Common mistakes
Check revenue in the period
Average order value is period revenue divided by completed orders. Keep refunds out of revenue if you also drop those orders from the count. Make sure this matches the number you enter.
Keep items sold in the period consistent
Items sold is optional context. Type 0 if you only want the order average. Use the same units and time period throughout the calculation.
Do not rely on one average order value scenario
Run a cautious case and an optimistic case. The range is often more useful than one exact-looking number.
Use this result well
What is the average revenue on each order?
It does not replace a quote, contract, accountant, or local employment guidance.