Free Shipping Threshold Calculator
Find the order subtotal needed to fund shipping and retain a target contribution.
Your numbers
Example values are prefilled. Use the same reporting period for all inputs.
Minimum order subtotal
₹1,000.00
Contribution before fixed order costs
₹400.00
The formula
Minimum subtotal = (Shipping subsidy + Other fixed variable costs + Target contribution) / (Contribution margin / 100), rounded up to the next paise.
Worked example
At 40% contribution margin, ₹80 shipping + ₹20 handling + ₹300 target contribution require a ₹1,000 order subtotal.
Frequently asked
Does this choose the best conversion threshold?
No. It gives a unit-economics threshold from your inputs. Validate customer behavior and shipping zones separately, and avoid counting a cost in both the margin and the fixed order costs.