Accounting Average Order Value (Per-Unit) Calculator
Calculate net average order value, average revenue per unit, and average units per order from your sales, refunds, orders, and units sold.
Overview
Use this Accounting Average Order Value (Per-Unit) Calculator to calculate net sales revenue, average order value (AOV), and average revenue per unit. Enter gross sales, refunds and returns, completed orders, and units sold for one consistent reporting period.
How it works
The calculator first subtracts refunds and returns from gross sales to find net sales revenue. It divides net sales revenue by completed orders to calculate average order value. It also divides net sales revenue by units sold to show average revenue per unit, then divides units sold by orders to show the average number of units in each order. These measures are most useful when all values cover the same period and follow the same accounting treatment.
How to use this calculator
- 1Enter gross sales revenue for the reporting period.
- 2Add the value of refunds and returns to deduct from sales.
- 3Enter the number of completed customer orders.
- 4Enter the total units sold within those orders.
- 5Review the net AOV, revenue per unit, and units per order.
Example Calculation
Gross sales revenue
$50,000
Refunds and returns
$2,500
Number of completed orders
1000
Units sold
2500
Average order value
$47.50
With gross sales of 50,000 and refunds of 2,500, net sales are 47,500. Across 1,000 orders and 2,500 units, average order value is 47.50, average revenue per unit is 19.00, and average units per order is 2.50.
Frequently asked questions
What is average order value?
Average order value, or AOV, is net sales revenue divided by the number of completed orders in a reporting period. It shows the average revenue associated with each order.
How is average revenue per unit calculated?
Average revenue per unit is net sales revenue divided by the total number of units sold. It is different from AOV because one order can contain more than one unit.
Should refunds be included in average order value?
For a net sales view, deduct refunds and returns from gross sales before calculating AOV. Keep the treatment consistent across reporting periods so results can be compared.
What is the difference between AOV and average units per order?
AOV measures revenue per completed order. Average units per order measures the quantity of items in each order, calculated by dividing units sold by completed orders.
Should shipping and sales tax be included in AOV?
That depends on your reporting policy and the question being analyzed. Use a consistent approach, and clearly determine whether the sales amount entered includes or excludes shipping, taxes, and discounts.
Why can AOV rise while revenue per unit falls?
This can happen when customers buy more units per order at a lower average price per unit. AOV reflects the full order value, while revenue per unit reflects the value of each individual unit.
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Assumptions and warnings
Assumptions
- All figures relate to the same reporting period and use the same currency.
- Completed orders and units sold exclude cancelled orders.
- Net sales revenue is calculated as gross sales less refunds and returns.
- The calculation does not separately account for taxes, shipping income, discounts, fees, or cost of goods unless they are already reflected in the amounts entered.
- Results are accounting estimates based on the data supplied.
Warnings
- This calculator provides an estimate only and is not accounting, tax, or financial advice.
- Check that your revenue recognition, refund treatment, and order definitions are consistent with your accounting policies.