Break-Even Calculator
Calculate how many units you need to sell to cover costs. Understand your break-even point and plan for profitability.
Enter Your Numbers
Rent, salaries, subscriptions, etc.
Product cost, shipping, packaging per unit
Desired monthly profit beyond break-even
Enter your costs and price to calculate break-even.
Understanding Break-Even Analysis
Fixed Costs
Expenses that stay the same regardless of sales volume: rent, salaries, software subscriptions, insurance, etc.
Variable Costs
Expenses that change with each sale: product cost, shipping, packaging, payment processing fees, etc.
Contribution Margin
The amount each sale contributes toward covering fixed costs. Higher margin means fewer sales needed to break even.
Using This Data
Compare break-even units to your current sales. If you're below break-even, focus on increasing sales or reducing costs.
Frequently Asked Questions
What is a break-even point?
The break-even point is when your total revenue equals your total costs - you're not making a profit, but you're not losing money either. It's the minimum sales volume needed to cover all your fixed and variable expenses. Every sale beyond this point generates profit.
How do I calculate break-even for ecommerce?
Divide your monthly fixed costs by your contribution margin (selling price minus variable cost per unit). For example, if fixed costs are $5,000/month, you sell at $50, and variable costs are $20, your contribution margin is $30. Break-even = $5,000 ÷ $30 = 167 units per month.
What are typical fixed costs for a Shopify store?
Common fixed costs include: Shopify subscription ($29-$299/month), apps and tools ($50-$500/month), marketing retainers, warehouse/storage fees, staff salaries, insurance, and accounting services. These don't change based on how many orders you process.
What are variable costs in ecommerce?
Variable costs increase with each sale: product/wholesale cost, shipping and fulfillment, packaging materials, payment processing fees (typically 2.9% + $0.30), marketplace fees, and returns processing. Calculate the total variable cost per order for accurate break-even analysis.
How can I lower my break-even point?
You can lower break-even by: reducing fixed costs (negotiate subscriptions, eliminate unused tools), reducing variable costs (better supplier pricing, cheaper shipping), or increasing prices. Also consider increasing average order value through bundles or upsells, which spreads fixed costs across more revenue.
