By Tyler Lastovich | Egmont National Park, Taranaki, New ZealandBigger orders start with
better payment terms.
Estimate the impact of a 30% increase in average invoice value.
Your business
Assumes a minimum 20% PaidTerms adoption
Additional annual gross profit
$126,000
≈ $10,500 per month
How flexible payments increase order value
Splitting an invoice into manageable payments removes the upfront cash-flow barrier, so a customer can order what they actually need rather than what fits one month's budget.
The flexibility is on the customer's side only — the supplier still gets paid upfront through PaidTerms.
What is average order value?
Average order value (AOV) is the average amount a customer spends per order. For a B2B supplier, “average invoice value” is the more natural term — the calculation is the same.
AOV = Total sales revenue ÷ Number of orders
How to increase average order value in B2B sales
Practical, proven ways to lift the average value of every order — with payment flexibility doing much of the work.
Offer flexible instalments
Let customers spread the cost of a larger order over several payments instead of one upfront invoice.
Introduce volume-based packages
Bundle pricing tiers around order size so buying more is the obvious, better-value choice.
Set minimum order thresholds
Use minimum order values to nudge borderline orders over the line.
Recommend relevant add-ons
Surface add-ons and accessories at the point of order to lift the total without extra sales effort.
Make higher-value purchases easier to approve
Reduce internal friction for buyers by making larger orders easier to justify and pay for.
Present the monthly payment alongside the total price
Showing “$X per month” next to the full price — the same way PaidTerms instalments are presented — can make a larger order feel more achievable.
Why increasing AOV can be more valuable than discounting
Discounting is a common way to win a larger order, but it reduces both revenue and gross profit on that sale — every dollar knocked off the price comes straight out of margin.
Payment flexibility takes a different approach. Instead of lowering the price, it addresses the real obstacle in many B2B purchases: affordability of the payment, not the value of the offer. A buyer who can spread a $10,000 order over several payments may order more than one who has to fund it upfront, without the supplier discounting a cent. See how this works in practice on the PaidTerms Capital page.
Frequently asked questions
Everything you need to know about average order value, this calculator, and how PaidTerms works.
%2520(1).jpg&w=3840&q=75)
Average order value (AOV) is the average amount a customer spends per order or invoice. For a B2B supplier this is usually called average invoice value, but the calculation is the same.
Average order value = Total sales revenue ÷ Number of orders. Divide your total revenue over a period by the number of orders or invoices in that period.
Splitting an invoice into manageable payments can reduce the upfront cash-flow barrier for a buyer, making it easier for them to order what their business actually needs rather than limiting the purchase to what they can pay in one go.
No. The 30% figure is an editable default used to illustrate the model — it is not a guarantee. Actual results depend on your customers, products, pricing and adoption, and you can change this assumption in the calculator to test your own scenarios.
Yes. With PaidTerms, the supplier receives payment upfront, subject to approval and PaidTerms' terms, while the customer repays over time.
This calculator focuses on the revenue and gross profit impact of a higher average order value, so it doesn't factor in a PaidTerms fee. Pricing can vary — check your current agreement, or contact PaidTerms, for the fee that applies to your business.
Yes. Every input — invoices per month, current average invoice value, adoption, expected AOV uplift and gross margin — can be edited to model different scenarios. Use "Reset example" to restore the default figures at any time.
No. This calculator produces estimates for illustrative purposes only and is not financial, tax or business advice. Speak with your own advisor before making decisions based on these figures.
No. The calculator runs entirely in your browser — the figures you enter are used only to calculate your results and are not stored or sent anywhere.
