Estimate how many orders you may need to cover fixed monthly costs, variable selling costs and a target monthly profit before listing or scaling a product.
Your estimated break-even point
These results are estimates for planning purposes. Use them to test whether your expected sales volume can cover fixed and variable selling costs.
Variable cost breakdown
| Product cost | $0.00 |
|---|---|
| Shipping cost | $0.00 |
| Packaging cost | $0.00 |
| Marketplace percentage fee | $0.00 |
| Fixed payment fee | $0.00 |
| Ad cost per order | $0.00 |
Assumptions used
Generic break-even calculator- Contribution per order equals average selling price minus variable cost per order.
- Variable costs include product cost, shipping, packaging, percentage fees, fixed payment fee and ad cost per order.
- Fixed monthly costs are treated as costs that do not change with each order.
- Taxes, refunds, chargebacks, currency conversion and platform-specific fee rules are not included.
- This calculator is for break-even estimates only and is not financial or tax advice.
How this break-even calculator works
This break-even calculator estimates how many orders you may need to cover your fixed monthly costs and variable selling costs.
Enter your fixed monthly costs, average selling price, product cost, shipping, packaging, marketplace fees, payment fees, ad cost per order and target monthly profit. The calculator then estimates your break-even orders, break-even revenue and orders needed to reach your target profit.
What it calculates
- Break-even orders
- Break-even revenue
- Contribution per order
- Variable cost per order
- Profit after planned orders
- Orders needed for target profit
Costs included
- Fixed monthly costs
- Product cost per order
- Shipping cost per order
- Packaging cost per order
- Marketplace percentage fee
- Fixed payment fee
- Ad cost per order
Example break-even calculation
Suppose your fixed monthly costs are $300.00 and your average selling price is $35.00. If your variable cost per order is $21.27, your contribution per order is $13.73.
In that example, you would need about 22 orders to cover your fixed monthly costs. After that point, each additional order contributes toward monthly profit.
This can help you decide whether a product has enough margin before increasing ads, buying inventory or committing to a monthly tool or platform cost.
Break-even orders vs target profit orders
Break-even orders
Break-even orders estimate the number of orders needed to cover fixed monthly costs. At this point, estimated profit is close to zero.
Target profit orders
Target profit orders estimate how many orders may be needed to cover fixed costs and also reach your selected monthly profit goal.
Common break-even mistakes for online sellers
Costs sellers often miss
- Monthly software subscriptions
- Shopify apps or marketplace tools
- Advertising cost per order
- Packaging and shipping supplies
- Payment processing fees
- Returns, refunds and discounts
Ways to improve break-even point
- Increase average selling price
- Reduce variable cost per order
- Lower ad cost per order
- Review fixed monthly tools
- Bundle low-ticket products
- Improve contribution per order
Related calculators
Use these related tools to review your pricing, margin and selling costs.
FAQ
What is a break-even calculator?
A break-even calculator estimates how many sales or orders may be needed to cover fixed costs and variable selling costs.
What is contribution per order?
Contribution per order is the amount left from each order after variable costs are subtracted from the selling price.
What are fixed monthly costs?
Fixed monthly costs are costs that usually stay the same regardless of how many orders you sell, such as software subscriptions, platform plans, tools or other recurring business expenses.
What are variable costs?
Variable costs are costs that usually change with each order, such as product cost, shipping, packaging, marketplace fees, payment fees and ad cost per order.
Why does my break-even point increase?
Your break-even point can increase when fixed costs rise, variable costs rise, fees increase or contribution per order decreases.
Is this calculator financial advice?
No. This calculator provides estimates for planning purposes only. It is not financial, tax, legal or accounting advice.