When you have the choice between free shipping and a percentage discount, which saves more money? The answer depends on your order size, the shipping cost, and the discount percentage.
The Quick Math
The decision is simple once you know the numbers:
Free shipping saves more when: Shipping cost > (Order total × Discount percentage)
Percent off saves more when: (Order total × Discount percentage) > Shipping cost
Real Examples
Example 1: Small Order, High Shipping
Order: $30 | Shipping: $8.99 | Discount offer: 15% off
- Free shipping saves: $8.99
- 15% off saves: $4.50
- Winner: Free shipping (saves $4.49 more)
Example 2: Large Order, Standard Shipping
Order: $200 | Shipping: $7.95 | Discount offer: 20% off
- Free shipping saves: $7.95
- 20% off saves: $40.00
- Winner: 20% off (saves $32.05 more)
The Breakeven Formula
To find the order amount where both options are equal:
Breakeven order = Shipping cost ÷ Discount percentage
Example: $8 shipping with 20% off code → $8 ÷ 0.20 = $40 breakeven
- Orders under $40: Choose free shipping
- Orders over $40: Choose 20% off
Pro Tips
- Check if free shipping has a minimum order threshold—you might qualify anyway
- Consider in-store pickup to avoid shipping costs entirely
- Some stores offer both simultaneously during major sales
- Heavy or oversized items often have higher shipping—free shipping wins more often