Accounting Average Order Value (Monthly) Calculator
Calculate your monthly average order value using gross sales, discounts, refunds, and completed customer orders.
Overview
This monthly average order value calculator estimates the net revenue earned per completed customer order. Enter gross sales, discounts, refunds and allowances, and the number of completed orders for the same month.
How it works
The calculator first subtracts sales discounts and refunds or allowances from gross sales to find net sales. It then divides net sales by the number of completed orders. This produces a net average order value, which is generally more useful for reviewing monthly revenue quality than a figure based on gross sales alone. The adjustment rate shows how much of gross sales was reduced by discounts and refunds.
How to use this calculator
- 1Enter gross sales recorded for the month before reductions.
- 2Add sales discounts granted during that month.
- 3Enter refunds, returns, credits, and allowances.
- 4Enter the number of completed orders included in the sales total.
- 5Review your net monthly average order value and supporting figures.
Example Calculation
Gross sales for the month
$50,000
Sales discounts for the month
$2,500
Refunds and allowances
$1,500
Completed orders
400
Monthly average order value
$115.00
Gross sales of 50,000 less 2,500 in discounts and 1,500 in refunds produce net sales of 46,000. Dividing by 400 completed orders gives a monthly average order value of 115.00.
Frequently asked questions
What is monthly average order value?
Monthly average order value, or AOV, is the average revenue generated by each completed order during a month. This calculator uses net sales divided by completed orders.
Should refunds be included in average order value?
For a net sales AOV, refunds and allowances are usually deducted because they reduce revenue retained from customer orders. Track gross AOV separately if you also want a pre-refund view.
Do cancelled orders count in the order total?
Usually no. Use completed orders that relate to the sales revenue entered. Excluding cancelled orders helps keep the revenue and order count consistent.
Are discounts included in AOV?
This calculator deducts sales discounts from gross sales before calculating the main AOV. It also displays gross AOV before discounts and refunds for comparison.
Should taxes and shipping be included in sales?
Use a consistent accounting policy. Many businesses calculate AOV from product net sales excluding sales taxes, while treatment of shipping revenue depends on the reporting purpose.
Why is my net AOV lower than gross AOV?
Net AOV is lower when discounts, refunds, returns, or allowances reduce gross sales. The difference indicates the effect of those adjustments on revenue per order.
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Assumptions and warnings
Assumptions
- The sales figures and completed order count cover the same monthly reporting period.
- Net sales are calculated as gross sales less sales discounts, refunds, and allowances.
- Each completed order is counted once, including orders with multiple items.
- Results are accounting estimates and do not include taxes, shipping income, payment processing fees, or other adjustments unless included in your figures.
Warnings
- This calculator provides an estimate only and is not accounting or financial advice.
- Use accounting records that apply a consistent treatment of returns, credits, taxes, and cancelled orders.