How it works
GST. The shipping fee you charge includes GST, which you pass on to Inland Revenue, so we divide it by 1.15. Courier bills are counted ex GST, because you claim that GST back. This assumes you're GST registered, which every store over $60,000 a year has to be.
Per order. For each zone, what you collect is the fee times the share of orders that pay it, divided by 1.15. What it costs is the courier charge plus packaging. The zones are weighted by their share of your orders.
Break-even fee. The fee that covers shipping on every order, including the free ones, is (courier + packaging) × 1.15 ÷ the share of orders that pay.
Free-shipping threshold. An order at the threshold keeps (threshold ÷ 1.15 × margin) minus shipping. Your average order today keeps (average ÷ 1.15 × margin) plus (fee ÷ 1.15) minus shipping. The break-even threshold is where the two are equal: your average order plus your shipping fee ÷ your margin. Shipping cost drops out, because you pay it either way.
Rural delivery
Couriers add a rural delivery fee on top of the base rate, so put your all-in rural cost in the rural row. The current published surcharges are on our NZ fees page.
Questions
What should I use for the courier cost?
Your average cost per parcel from your courier invoices, ex GST, including fuel and rural surcharges. If you use more than one courier, use the blend.
Why is free shipping shown on its own?
Because it's a choice you made, and it's often the biggest part of the gap. It's also the easiest part to change.
Should the threshold sit above my average order?
Yes. A threshold below your average order gives free shipping to orders that would have paid for it. The break-even point is always above your average order whenever you charge for shipping today.
Do you keep what I type?
No. The calculator runs in your browser. We count that someone used it, nothing else.