E-commerce Break-Even Calculator
Find out exactly how many units you need to sell each month to cover all your costs. See your break-even point visually on a chart.
Using example values to show you how it works.
Your Cost Structure
Rent, subscriptions, salaries, etc.
COGS + shipping + fees per unit
Optional: for break-even timeline
Your Break-Even Analysis
Break-Even Units
84
units per month
Break-Even Revenue
$3,780
per month
Contribution Margin
$30
66.7% per unit
Time to Break Even
13 days
at 200 units/month
Strong margins -- your pricing power is a competitive advantage
Break-Even Visualization
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How to Calculate Your Break-Even Point
The break-even point tells you exactly how many units you need to sell each month to cover all your costs. Below this number, you are losing money. Above it, every additional sale is profit. Understanding your break-even point is one of the most important calculations for any e-commerce business.
The Break-Even Formula
Break-Even Units = Fixed Monthly Costs / (Selling Price - Variable Cost per Unit)
Contribution Margin = Selling Price - Variable Cost per Unit
Break-Even Revenue = Break-Even Units x Selling Price
The contribution margin is the amount each unit sold contributes toward covering your fixed costs. Once you have sold enough units to cover all fixed costs, you have reached your break-even point.
What to Include in Your Costs
Fixed costs stay the same regardless of how many units you sell. These include rent, software subscriptions (Shopify, email marketing tools), salaries, insurance, and loan payments. Be thorough here -- underestimating fixed costs is the most common mistake.
Variable costs change with each unit sold. These include product cost (COGS), shipping per unit, packaging, payment processing fees (2.9% + $0.30 per transaction), marketplace fees, and returns/refunds allocation. Do not forget to include payment processing fees -- they add up quickly.
Tips for Reaching Break-Even Faster
- Include all fixed costs. Many new store owners forget about software subscriptions, domain renewals, and their own time. A realistic cost structure leads to a realistic break-even target.
- Include payment processing in variable costs. Stripe and Shopify Payments charge 2.9% + $0.30 per transaction. On a $40 product, that is $1.46 per sale -- a meaningful portion of your variable costs.
- Focus on contribution margin. The higher your contribution margin, the fewer units you need to sell. Consider whether raising prices by $5 would lose fewer customers than the extra margin gains.
Frequently Asked Questions
What is a break-even point?
The break-even point is the number of units you need to sell (or revenue you need to earn) to cover all your costs -- both fixed and variable. Below break-even, you are losing money. Above it, every additional sale is profit. It is the minimum viable target for any business.
How long should it take to break even?
Most new e-commerce businesses aim to break even within 6-18 months. Dropshipping stores with minimal fixed costs might break even in weeks, while brands building inventory and investing in marketing may take a year or more. Use the projected monthly units field above to see your estimated timeline.
What if I cannot break even?
If the calculator shows an unrealistically high break-even number or "N/A," your variable cost per unit may be too close to your selling price. Consider raising prices, negotiating better supplier rates, optimizing shipping costs, or reducing fixed expenses. Small improvements in multiple areas compound into a significant difference.
Related Tools
- Profit Margin Calculator — Calculate your true profit margin with all e-commerce costs included.
- Store Health Scorecard — Grade your store across 6 key metrics with industry benchmarks.
Want this tracked automatically?
briefpeak tracks your actual daily revenue against your break-even target. Get notified the moment you hit profitability.