Average Transaction Value and Number of Transactions

31 December 2018

Average Transaction value

The average transaction value is calculated by dividing the total value of all transactions by the number of transactions or sales. This can be calculated on a daily, monthly or annual basis.

An example of this may be - sales of $200,000 for the year, generated from 10 sales or transactions. Therefore the equation would be 200,000 / 10 = $20,000. The average transaction value is $20,000.

3 Common Mistakes

  • Not considering the costs involved in the transactions or process.
  • Utilising a certain cut-off period (IE sales transactions may fall over into the following period and therefore certain costs may be missed).
  • Upselling products or services to increase the average transaction value.

Average Number of Transactions

The average number of transactions is calculated by using the number of transactions over a specified period of time and dividing that by the time period of the desired outcome.

An example of this may be – total number of transactions for the year would be 1095 and the desired outcome is how many transactions on average would there be daily? Therefore the equation is 1095/365(days in a year) = 3 transactions per day.

3 Common Mistakes

  • Coupling transactions together as a single sale.
  • Expanding a single transaction to multiple transactions.
  • Using data from a specific time period, taking into account seasonal expectations if need be.
Jodie Thompson, Director, Sunshine Coast

Jodie Thompson

Director
Sunshine Coast office

Episode 25

Do you want fries with that?  Increasing your businesses 'Average Transaction Value' can dramatically improve your profit without the cost of attracting new customers.


Jodie Thompson from our Sunshine Coast office talks to host Gavin Nash about this very topic and gives some great examples and tips on how to do it.


Available on Apple Podcasts & Spotify or right here!

Latest News

Episode 78 FS360 Podcast - Hiring Employees
28 April 2025
When it comes to hiring employees, factors such as employer responsibilities, recruitment and employee onboarding play an important part in the process. Speaking with Gavin Nash on the FS360 Podcast, Natalie Grohn from Evolve Online Bookkeeping outlined the other important factors to be considered in the hiring process.
Short Stay Levy Victoria - explained
12 April 2025
Short Stay Levy Victoria - explained by our Legal Team at Mulcahy & Co.
Danny Archer discusses Trump's Tariffs
8 April 2025
The Trump Administration's imposed tariff's have resulted in share market volatility and a lot of negative news.
7 March 2025
We’re delighted to invite you to an exclusive session with Andrew Hunt, InvestSense's independent economist. Based in the UK, Andrew has a unique ability to read global economic trends and decipher what they mean for Australian investors.
Show More