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, M Group 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

Retaining Good People | M Group Accounting
24 March 2026
Many employees leave roles not because of pay or conditions, but because they can’t see a future.
The Employee Life Cycle | M Group Accounting
24 March 2026
Across Australia, one of the strongest predictors of productivity stability and long term profitability is something many leaders still underestimate: people management.
17 March 2026
Lending Partner in our Geelong office, Liam Nankervis talks about two Government assistance programs available. The Australian Government 5% Deposit Scheme and the Australian Government Help to Buy Scheme. Liam answers your questions and provides insight into these two important schemes available to help you buy your home! Watch the Podcast below or subscribe to our podcast on Apple, Spotify or Google Podcasts.
January 2026 Victorian bushfires - Government relief packages.
16 January 2026
Recovery support for people and communities affected by the Victorian fires that started on 7 January 2026. Victoria is facing severe bushfires throughout most of the state. A State of Disaster has been declared. Communities, farmers and businesses are facing heavy losses. The Victorian and Australian Governments are providing essential support to communities hit by the January bushfires. This aid will help with both immediate and long-term recovery needs. A summary of what if on offer is below: Financial Help for families Emergency Accommodation Long Term Recovery Help Clean-Up Help Help for Primary Producers and Farmers Counselling and Social Recovery Roads and community asset support Insurance Advice General Support  Further information is available here: https://www.vic.gov.au/january-2026-victorian-bushfires
Show More