Average Order Value Calculator Formula
Understand the math behind the average order value calculator. Each variable explained with a worked example.
Formulas Used
Average Order Value
aov = total_orders > 0 ? total_revenue / total_orders : 0Orders Needed for $1M Revenue
orders_for_target = (total_orders > 0 and total_revenue > 0) ? 1000000 / (total_revenue / total_orders) : 0Variables
| Variable | Description | Default |
|---|---|---|
total_revenue | Total Revenue(USD) | 250000 |
total_orders | Total Number of Orders | 5000 |
How It Works
How to Calculate Average Order Value
Formula
AOV = Total Revenue / Total Number of Orders
AOV reveals how much each transaction is worth. Increasing AOV is one of the three fundamental growth levers along with traffic and conversion rate. A 10% increase in AOV directly translates to 10% more revenue without needing additional customers or traffic. E-commerce and retail businesses monitor AOV closely by channel, customer segment, and season.
Worked Example
An online store earned $250,000 from 5,000 orders over a quarter.
total_revenue = 250000total_orders = 5000
- 01AOV = $250,000 / 5,000 = $50.00
- 02To reach $1M revenue at this AOV: 1,000,000 / $50 = 20,000 orders
Ready to run the numbers?
Open Average Order Value Calculator