Break-Even Calculator
How many sales do you need each month before your shop starts making money? Enter your fixed costs, your price, the cost of each item and your platform fees.
Built and checked by Saurabh Pandey · page updated
Calculator
Fee breakdown
Enter your price and costs.
How to use the Break-Even Calculator
- Add up your fixed costs for a typical month: anything you pay whether or not you sell, including what you want to pay yourself.
- Enter your average selling price and the variable cost of one sale (the product, packaging and postage you pay).
- Enter the fees your platform takes as a percentage of the price. Use the Etsy, eBay or Amazon calculators to find your real percentage.
- Optionally enter the profit you want each month to see how many sales that needs.
How it is calculated
Contribution per unit = price − (fees % × price) − variable cost Break-even units = fixed costs ÷ contribution per unit (rounded up) Units for a target = (fixed costs + target profit) ÷ contribution per unit Break-even revenue = units × price
The contribution is what each sale adds towards your fixed costs. If it is zero or negative, more sales only increase your losses, and the fix is a higher price or lower costs, not more volume.
Worked examples
US: an Etsy shop with $500 a month of fixed costs
Each sale contributes $12.50, so the shop breaks even at 40 sales a month.
| Price per unit | $25.00 |
| Fees per unit (10%) | −$2.50 |
| Variable cost per unit | −$10.00 |
| Contribution per unit | $12.50 |
| Fixed costs | $500.00 |
Contribution per unit $12.50 · Break-even 40 units/month · Revenue needed $1,000.00
The same shop aiming for $1,000 profit a month
| Price per unit | $25.00 |
| Fees per unit (10%) | −$2.50 |
| Variable cost per unit | −$10.00 |
| Contribution per unit | $12.50 |
| Fixed costs + target profit | $1,500.00 |
Contribution per unit $12.50 · Break-even 120 units/month · Revenue needed $3,000.00
UK: a Shopify store with £350 of apps and plan costs
| Price per unit | £32.00 |
| Fees per unit (2.5%) | −£0.80 |
| Variable cost per unit | −£14.00 |
| Contribution per unit | £17.20 |
| Fixed costs | £350.00 |
Contribution per unit £17.20 · Break-even 21 units/month · Revenue needed £672.00
India: a marketplace seller with ₹25,000 fixed costs
High marketplace fees (commission, fixed fee and GST on fees) mean many more sales are needed.
| Price per unit | ₹799.00 |
| Fees per unit (22%) | −₹175.78 |
| Variable cost per unit | −₹380.00 |
| Contribution per unit | ₹243.22 |
| Fixed costs | ₹25,000.00 |
Contribution per unit ₹243.22 · Break-even 103 units/month · Revenue needed ₹82,297.00
Three ways to break even sooner
- Raise the price a little. Because fixed costs do not change, a small price rise has a big effect: in the first example, raising $25 to $27.50 cuts the sales needed from 40 to 34 a month.
- Cut a fixed cost. Cancel subscriptions and apps you do not use. Every $50 saved per month is $50 less to recover.
- Increase order value. Bundles and free-shipping thresholds raise the price per order while many costs stay the same.
Frequently asked questions
How do I calculate my break-even point?
Work out how much each sale contributes: price minus platform fees minus the variable cost of the item. Divide your monthly fixed costs by that contribution and round up. That is the number of sales you need each month to cover your costs.
What counts as a fixed cost?
Anything you pay regardless of how many orders you get: platform subscriptions, apps, website hosting, software, rent, insurance and the salary you want to pay yourself.
What counts as a variable cost?
Costs that come with each sale: the product or materials, packaging, postage you pay and per-order fees. Percentage fees are entered separately in the calculator.
What if the calculator says I can never break even?
Your price does not cover the variable costs and fees of each sale. Raise the price, lower the cost per item or choose a cheaper platform before trying to sell more.
Should I include my own time?
Yes, if you want a true picture. Add the monthly amount you want to pay yourself to fixed costs, or use the target profit field.