Result
Average order value
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This calculation is for informational purposes only and does not replace advice from a qualified professional. Formulas and rates may not fit your exact situation — double-check the figures before making decisions.
How it is calculated
Average order value = revenue for the period ÷ number of orders over that same period. It's counted per order, not per customer — the same customer placing two orders contributes two order values, not one.
AOV connects directly to planning: required revenue = AOV × number of orders, so it's useful in both directions — estimating revenue from a sales plan, or working out how many orders are needed for a revenue target if only the average order is known.
AOV can grow for very different reasons — pricier products, cross-sell and upsell, or simply rising prices — and these paths have very different effects on profit and customer satisfaction. A rising AOV isn't automatically good news on its own; it's best read alongside order count and conversion rate, not in isolation.