Average Order Value Tool
Calculate initial product revenue per order after discounts and a separately labelled return-adjusted value for the same orders.
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Calculate initial product revenue per order after discounts, and show a separately labelled return-adjusted value for the same order cohort.
Worked example
Example output from the starting values. Enter your figures and press Calculate for your result.
- Initial product sales after discounts
- 2,000 currency units
- Orders in cohort
- 100 orders
- Average order value before later adjustments
- 20 currency units/order
- Return-adjusted net product sales
- 2,000 currency units
- Return-adjusted product revenue per original order
- 20 currency units/order
Formula
Initial sales after discounts = initial gross product sales − initial discounts. AOV before later adjustments = initial sales after discounts ÷ orders. Return-adjusted product revenue per order = (initial sales after discounts − net product sales reversals) ÷ the same original orders.
How to use this calculation
2,000 product sales ÷ 100 orders = 20 per order. With 300 initial discounts, AOV is 17. If the same orders subsequently have 250 in net product reversals, the separately labelled return-adjusted value is 14.50 per original order.
- The initial-order basis matches Shopify's documented AOV definition: original gross product sales less original discounts, excluding later adjustments. Taxes, duties and shipping are excluded here. Other platforms can use different bases; compare like with like and keep one currency and a matching order cohort.
- Use net product reversals allocated to these original orders, including related discount corrections. Do not mix older-cohort refunds into a new-order average or count refunds as extra orders. Discounts must not exceed gross sales; allocated product reversals must not exceed the discounted product sales.
- Zero-value gift orders can yield a valid zero average, but zero orders makes AOV undefined. This is the arithmetic mean, not a median, typical basket, customer lifetime value or profitability measure. Higher order value does not by itself mean higher profit.
Formula reference: Shopify Help: Average Order Value and sales-report definitions. General planning information, not a guarantee of business results.
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