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How to calculate Average order value

The Average order value formula, with plain worked examples you can check yourself.

Average order value = Revenue ÷ Orders

Worked examples

Revenue = 1200 · Orders = 20Average order value = 60
Revenue = 5600 · Orders = 70Average order value = 80
Revenue = 4200 · Orders = 70Average order value = 60

How to use it

  1. Write down the values for each letter in the formula.
  2. Do the brackets first, then divide or multiply.
  3. Check the units before you compare results.
  4. Compare the answer with last period or with a competitor to see if it is good or bad.

This formula belongs to Sales Funnel.

Related terms

Sales funnelLeadConversion rateCustomer retentionSales pipelineLanding page

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