Smart shopping

Free Delivery vs Percentage Discounts: Which Saves More?

Most UK shops take one code per order, so you often have to choose. This guide shows how to work out which code saves you more.

Sealed cardboard delivery box on a table
Photo by @mediamodifier on Unsplash

This guide is for online shoppers who have two codes to choose from and can only use one. Most UK retailers accept a single code per order, so picking the right one matters.

It shows you the quick sum, the break-even basket for common delivery charges and the cases where the obvious choice is wrong.

Which saves more, free delivery or a percentage code?

The better code is the one worth more in pounds on your basket. A free delivery code is worth exactly the delivery charge. A percentage code is worth that percentage of the eligible basket, which is usually the goods total before delivery.

So compare two numbers: the delivery charge, and your basket multiplied by the percentage. On a £25 basket with £3.95 delivery, 10% off saves £2.50, so free delivery wins by £1.45. On a £60 basket, the same 10% code saves £6. That beats free delivery by £2.05.

Where is the break-even point?

The break-even point is the basket value where both codes save the same. To find it, divide the delivery charge by the percentage as a decimal. For £3.95 delivery and 10% off, that is £3.95 divided by 0.10, or £39.50.

Delivery charge10% code15% code20% code
£2.99£29.90£19.93£14.95
£3.95£39.50£26.33£19.75
£4.99£49.90£33.27£24.95
£29.00 (bulky item)£290.00£193.33£145.00

If your basket is below the figure in the table, take free delivery. Above it, take the percentage code. Percentage codes grow with your basket, while free delivery is worth a fixed amount however much you spend.

Worked examples

These three baskets show how the answer changes with basket size and delivery cost. All figures are illustrative.

A small beauty order

A £12 cleanser and an £11 moisturiser come to £23, with £3.95 delivery. A 10% code saves £2.30, while free delivery saves £3.95. With free delivery you pay £23, against £24.65 with the percentage code. Small orders nearly always favour free delivery. The only exception is a high percentage code, such as 20% off, on a basket close to the break-even figure.

A mid-sized fashion order

A £45 jacket and a £20 top come to £65, with £3.99 delivery. A 15% code saves £9.75, which easily beats the £3.99 delivery saving. You pay £59.24 including delivery, against £65 with the free delivery code. Baskets from shops such as Next and H&M often land in this range.

A bulky home order

A £180 chest of drawers has a £29 large-item delivery charge. A 10% code saves £18, but free delivery saves £29. Free delivery wins here, even on a big basket. The usual rule of "big basket, use the percentage" fails whenever the delivery charge is large. Furniture and garden items in the home and garden category often fall into this group.

Free delivery thresholds

Many retailers give free delivery automatically once you spend over a set amount, often £30, £40 or £50. That threshold changes which code is worth using. It is usually shown in the site banner, the basket page or the delivery information page.

When you are already over the threshold

If your basket already qualifies for free delivery, a free delivery code is worth nothing. The percentage code is then the only one that saves you money.

When you are just under it

If you are a few pounds short, adding something you genuinely need may tip you over. Take a £37 basket, a £40 threshold and £3.95 delivery. Add a £4 item you were going to buy anyway, and delivery becomes free. A 10% code then saves £4.10 on top. Adding things you do not want just to reach a threshold is spending, not saving. Our free delivery codes page lists current offers and thresholds.

How do exclusions and minimum spends change the maths?

They shrink the part of your basket a code applies to, so always work from the eligible total. Check the code's terms before you do the sum. They are usually linked next to the code or shown when you apply it at checkout.

Exclusions

A 15% code may exclude sale items, some brands or whole departments. If half of a £65 basket is excluded, the code only covers £32.50. That saves £4.88, which is close to a £3.99 delivery saving rather than far ahead of it.

Minimum spends

Both types of code often need a minimum spend. A free delivery code for orders over £20 will not work on £19. In the same way, a 10% code for orders over £50 will not work on £48. If a code still refuses to apply, our guide on why voucher codes sometimes fail covers the usual causes.

Fixed-amount codes and returns

Two other factors can tip the decision: codes that take off a fixed sum, and what happens if you send something back.

Fixed-amount codes

Some codes give a set amount off, such as £5 off a £30 spend. Treat these like free delivery, because the saving stays the same whatever you spend. A £5 code beats £3.95 free delivery on any eligible basket. It also beats a 10% code on anything under £50.

Returns

Returns can change which code was the better choice after the event. Percentage discounts are usually spread across the items in your order. If you return one, you get back the discounted price you paid for it. Free delivery codes are not affected by partial returns, but return postage may still apply. Factor that in on fashion orders where you expect to send items back.

A quick decision routine

  1. Check whether your basket already gets free delivery.
  2. Read each code's minimum spend and exclusions.
  3. Multiply the eligible basket by the percentage.
  4. Compare that figure with the delivery charge.
  5. Use the larger saving, and think about returns if the two are close.

For standard parcels and a 10% code, the dividing line sits around £30 to £50. With 15% or 20% codes, it drops to roughly £15 to £33, depending on the delivery charge. For bulky deliveries it rises into the hundreds. Run the sum a few times and it soon becomes second nature. It takes seconds at checkout, and over a year of online shopping those few pounds per order add up to a useful saving.