Free Shipping Threshold Scenario Calculator

How the free shipping threshold scenario calculator works

The product contribution percentage is after product-variable cost but before payment, shipping and packaging. Subtract the payment percentage to find the net basket percentage. Contribution is basket × that net percentage less shipping, packaging and fixed payment fee. It rounds once after those components are combined.

A sufficient basket before final profit rounding is (shipping + packaging + fixed fee + desired contribution) divided by a positive net percentage, rounded upward to cents. It is a conservative sufficient threshold, not a claim about the mathematically smallest basket that might display a rounded target contribution. A nonpositive net percentage cannot cover a positive cost-plus-target amount.

The model assumes one stable product mix and flat fulfillment charges. It does not predict basket uplift, conversion, zone/weight steps, discounts, refunds, tax or carrier policy. Shipping and packaging subsidy is shown as an entered cost, not as evidence customers will spend enough to fund it.

Worked example

A 40% product contribution rate less 3% payment percentage leaves 37%. Shipping 5, packaging 2, fixed fee 0.30 and desired contribution 10 need 17.30 ÷ 0.37, rounded upward to a sufficient basket of 46.76. A basket of 50 contributes 11.20. Raising shipping to 8 makes the sufficient basket 54.87.

Sources and assumptions

The source material explains the underlying calculation or pricing structure. Entered prices, costs, schedules and scenario choices are your assumptions; this tool does not obtain supplier quotes or predict actual results.

• Shopify: profit, net sales and cost definitions
• Stripe: payment-fee components, not fixed calculator rates