Cart Upsell Revenue Calculator

Upsell revenue is orders that see the offer × the share that accept × the average add-on value. Dividing by all orders gives the lift in average order value.

Also called: Cross-sell revenue calculator · AOV lift calculator

  • Last updated
  • Formula tested against reference values

Your numbers

Share of those who see the offer and accept it.

Result

Extra revenue per month
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Calculating…

Orders with an upsell
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Extra gross profit per month
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AOV lift
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New average order value
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AOV lift (%)
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Extra revenue per year
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How to use this calculator

  1. Enter or choose orders per month.
  2. Enter or choose orders that see the offer.
  3. Enter or choose take rate.
  4. Enter or choose average upsell value.
  5. Enter or choose gross margin on upsell items.
  6. The extra revenue per month updates as you type. Use Copy result or Share to keep it.

Method

Upsells = Orders × Shown% × Take%; Extra revenue = Upsells × Upsell value; AOV lift = Extra revenue ÷ Orders

Shown%
share of orders that see the offer
Take%
share of viewers who accept

Worked example

  1. Upsells = 2,000 × 80% × 12% = 192.
  2. Extra revenue = 192 × 25 = 4,800; gross profit at 50% = 2,400.
  3. AOV lift = 4,800 ÷ 2,000 = 2.40, so AOV goes from 50 to 52.40.

The upsell would add about 4,800 a month in revenue and 2,400 in gross profit, lifting AOV by 2.40 (4.8%).

What the result means

Judge an upsell on extra gross profit, and check that conversion did not fall: a pushy offer that costs even a small share of checkouts can wipe out the gain.

Assumptions and limits

  • Showing the offer does not change the number of orders.
  • Upsell items would not otherwise have been bought.
  • Cannibalisation of items customers would have bought anyway, and any effect on conversion, are not modelled.

Questions

Upsell or cross-sell?

An upsell offers a better version of the item; a cross-sell offers a related item. The arithmetic here works for either.

Where do I get the take rate?

From an A/B test or your app’s reports. Until you have data, try a cautious range.