01
Enter your fixed costs
Add all costs that do not change with sales volume: warehouse rent, software subscriptions, account fees, salaries. Use a monthly total for monthly break-even analysis.
Break-Even Point Calculator
Find exactly how many units you need to sell before every extra sale is profit.
Updated Reviewed by Sajid Hussain· Editor
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June 9, 2026
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Break-even analysis for ecommerce
Break-even point: what it is, how to calculate it, and why marketplace fees change everything
The break-even point is the unit volume at which your total revenue exactly covers your total costs — neither profit nor loss. Every product you sell above that number generates pure operating profit; every unit below it deepens the loss. For an ecommerce business, knowing this number is the difference between pricing confidently and guessing.
The critical variable is contribution margin — the amount left from each sale after subtracting variable costs (product cost, fulfilment, packaging) and marketplace fees. A higher contribution margin means you break even faster; a thin margin means you need to sell far more units to cover fixed costs. This is why a 15% Amazon referral fee matters so much: it silently shrinks every unit's contribution before you even count the product cost.
This calculator is built for real ecommerce math, not textbook examples. It subtracts the platform fee from the selling price before computing contribution margin, optionally shows how many more units you need to hit a specific profit target, and displays your current margin of safety — the buffer between where you are today and the point where sales would wipe out your profit.
How it works
Four inputs, a complete break-even picture
Enter your cost structure and selling price. The optional fields add margin-of-safety and profit-goal analysis.
02
Enter variable cost per unit
Include your product cost (COGS), FBA or 3PL fulfilment fee, and packaging per unit. Do not include the marketplace referral fee here — enter it separately below.
03
Enter the marketplace fee and selling price
The referral fee % is deducted from your selling price before computing contribution margin. Enter your listed selling price — the amount the customer pays.
04
Optionally add current volume and profit goal
Enter how many units you currently sell to see your margin of safety. Enter a monthly profit target to see the extra units needed beyond break-even to reach it.
05
Read the break-even output
The calculator shows break-even units, break-even revenue, contribution margin per unit and ratio, margin of safety, and units required for your target profit — all in one view.
Steps to use the Break-Even Point Calculator: Enter your fixed costs, Enter variable cost per unit, Enter the marketplace fee and selling price, Optionally add current volume and profit goal, Read the break-even output.
Formula
The break-even formulas used in this calculator
Every calculation is standard managerial accounting, extended to account for marketplace fees.
01
Fee-adjusted contribution margin per unit
CM = Selling Price × (1 − Fee Rate) − Variable Cost per Unit
Deducts the marketplace referral fee from revenue first, then subtracts variable costs. At 35 selling price, 15% fee, 12 variable cost: CM = 35 × 0.85 − 12 = 17.75.
02
Break-even units
Break-Even Units = ⌈Fixed Costs ÷ Contribution Margin per Unit⌉
The ceiling function (⌈ ⌉) rounds up to the nearest whole unit — you cannot sell a fraction of a unit. At 3,000 fixed costs and 17.75 CM: ⌈3,000 ÷ 17.75⌉ = 170 units.
03
Break-even revenue
Break-Even Revenue = Break-Even Units × Selling Price
The total revenue you need to generate to cover all costs. 170 units × 35 = 5,950 per month.
04
Units for target profit
Units for Profit = ⌈(Fixed Costs + Target Profit) ÷ Contribution Margin⌉
Adds your target profit to the fixed costs, then divides by CM. At 2,000 profit goal: ⌈(3,000 + 2,000) ÷ 17.75⌉ = 282 units.
05
Margin of safety
Margin of Safety % = (Current Units − Break-Even Units) ÷ Current Units × 100
The buffer between current volume and break-even, expressed as a percentage of current units. At 200 units with BEP of 170: (200 − 170) ÷ 200 × 100 = 15%.
Worked example
Break-even worked example: 35 selling price, 3,000 fixed costs, 15% Amazon fee
Default inputs: 3,000 fixed costs, 35 selling price, 12 variable cost per unit, 15% marketplace fee, 200 current units, 2,000 profit target.
Scenario
You sell a product for $35.00 with 15% Amazon referral fee, $12.00 variable cost per unit, and $3,000.00 in monthly fixed costs. You are currently selling 200 units and want to reach $2,000.00 profit.
1
Step 1 · Contribution margin per unit
CM = $35.00 × (1 − 0.15) − $12.00 = $35.00 × 0.85 − $12.00 = $5.25 fee subtracted, leaving $17.75 CM per unit.
CM = $17.75 per unit (50.7% CM ratio)
2
Step 2 · Break-even units
BEP = ⌈$3,000.00 ÷ $17.75⌉ = ⌈169.01⌉ = $170.00 units. You must sell this many units per month before any unit contributes to profit.
Break-even: $170.00 units / $5,950.00 revenue
3
Step 3 · Units for target profit
Units = ⌈($3,000.00 + 2000) ÷ $17.75⌉ = ⌈281.69⌉ = $282.00. To generate $2,000.00 operating profit, you need $282.00 units — $282.00 minus $170.00 = 112 units above break-even.
$282.00 units for $2,000.00 profit
4
Step 4 · Margin of safety at 200 units
MoS = (200 − $170.00) ÷ 200 × 100 = 30 ÷ 200 × 100 = 15%. Your current volume is 15% above break-even — volume could drop that much before you hit a loss.
Margin of safety: 15%
The takeaway
At 200 units you are profitably above the $170.00-unit break-even with a 15% margin of safety, generating $550.00 profit. You need $282.00 units to reach $2,000.00 — 112 more than today.
Benchmarks
Break-even and margin benchmarks for ecommerce
Reference ranges for contribution margin ratios and break-even volumes by channel and product type.
| Metric | Poor | Average | Good | Excellent |
|---|---|---|---|---|
CM ratio — Amazon FBA (typical) Jungle Scout State of the Amazon Seller 2025 | < 20% | 20–35% | 35–50% | 50%+ |
CM ratio — Etsy handmade Etsy Seller Handbook: Pricing | < 30% | 30–45% | 45–60% | 60%+ |
CM ratio — Shopify DTC Shopify Plus Benchmark Report 2024 | < 30% | 30–45% | 45–60% | 60%+ |
Margin of safety — healthy buffer CFA Institute Management Accounting | < 10% | 10–20% | 20–40% | 40%+ |
Break-even units — small seller Jungle Scout State of the Amazon Seller 2025 | 500+/mo | 200–500/mo | 100–200/mo | < 100/mo |
Fixed-to-variable cost ratio Harvard Business Review: Cost Structures | > 60% | 40–60% | 20–40% | < 20% |
Why this calculator
Calcrux vs other break-even calculators
Most break-even calculators ignore marketplace fees — a critical omission for any ecommerce seller. Calcrux builds fee-aware CM math in from the start.
| Feature | Calcrux | Omni Calculator | QuickBooks BEP |
|---|---|---|---|
| Marketplace fee deducted from CM | |||
| Break-even in both units and revenue | |||
| Margin of safety calculation | Partial | ||
| Units needed for a specific profit target | |||
| Pricing sensitivity (BEP if price drops 10%) | |||
| SmartInsights with recovery actions | |||
| Contribution margin ratio output | Partial | ||
| Visual BEP chart | |||
| Works in any currency | Most | USD only | |
| Free, no signup | Login required |
Common mistakes
The 6 most common break-even mistakes
Forgetting marketplace fees in the contribution margin
Why it matters
A 15% referral fee on a 35 selling-price product removes 5.25 per unit from CM — turning a 17.75 CM into 12.50 without the fee accounted for, raising break-even by 42%.
Fix
Always enter your marketplace fee rate separately so it is deducted from the selling price before CM is computed.
Including FBA fulfilment fees in both variable cost and marketplace fee
Why it matters
Double-counting the fulfilment fee overstates variable cost, artificially depresses CM, and makes break-even appear higher than it really is.
Fix
FBA referral fee → marketplace fee field. FBA fulfilment fee (picking, packing, shipping) → variable cost per unit. They are different line items.
Using a monthly fixed cost figure that excludes annual costs
Why it matters
Annual software licenses, trade-show fees, or product photography costs are still fixed costs — spreading them monthly often adds 200–500 to the real fixed cost base.
Fix
Divide all annual fixed costs by 12 and add them to your monthly fixed cost total before running the calculation.
Not tracking pricing sensitivity
Why it matters
A 10% promotional discount or competitive price match can push break-even up by 20–30%+ if contribution margin is thin. Many sellers run promotions without knowing this.
Fix
Check the pricing sensitivity warning: if BEP at price −10% is significantly higher than your current unit volume, your pricing has no safety buffer for promotions.
Confusing break-even with profitability
Why it matters
A zero-profit break-even business generates no cash for growth, taxes, or owner salary. Break-even is the floor, not the goal.
Fix
Enter your monthly profit target — not zero — to find the real unit volume you need to run a viable business.
Treating break-even as a one-time calculation
Why it matters
Fee schedules, COGS, and fixed costs change quarterly. An Amazon fee increase or a rent hike shifts your break-even without any change in what you sell.
Fix
Recalculate break-even whenever costs or fees change. Monthly monitoring catches margin erosion before it becomes a cash crisis.
Tips
Break-even analysis — 6 power tips
Target 20% margin of safety
Do not run at break-even — plan to operate 20% above it. A 20% margin of safety means revenue can drop 20% before you hit a loss, giving you room for seasonal dips or slow months.
Model break-even before sourcing
Before placing a purchase order, model the break-even point using your estimated selling price and known fees. If break-even requires more units than you can realistically sell, the product economics are broken from the start.
Screen products by CM ratio
A healthy ecommerce CM ratio is typically 35–50%+. If a product's CM ratio falls below 25–30%, a single fee increase or promotion can wipe out the margin. Use the CM ratio as a screening filter for new products.
Separate break-even by channel
Your Amazon FBA break-even and your DTC / Shopify break-even are different because fees differ. Run the calculator separately per channel — DTC typically has a lower fee rate but higher fixed ad spend.
Recalculate after fee changes
Amazon adjusts FBA and referral fees annually (often January and August). A fee change of even 1% on a thin CM can shift your break-even by 5–10%. Bookmark this calculator for quarterly reviews.
Test sensitivity before discounting
Before discounting 10–20%, run the calculator at the discounted price. If the new break-even exceeds your expected promotional volume, the promotion will lose money — structure it as a loss-leader only if you have the budget for it.
Use cases
Who uses a break-even calculator
The Break-Even Point Calculator works across every stage of the workflow.
Amazon FBA Seller / Product Researcher
Inputs estimated selling price, FBA fees, and COGS to find how many units per month are needed before the product becomes profitable, before placing the first order.
Etsy Seller / Handmade Business Owner
Works backward from a monthly income target to find the selling price that achieves break-even within a realistic sales volume for their product category.
Ecommerce Store Owner / Brand Manager
Models break-even at the promotional price to determine whether a 20%-off sale will still cover fixed costs at the expected promotional volume.
Operations Manager / Supply Chain Lead
Adds the new rent to fixed costs and re-runs break-even to find the additional unit volume needed to justify the expansion.
Finance Analyst / Product Manager
Uses margin of safety and pricing sensitivity outputs to model what happens to profitability if selling price drops 10% due to competitor pricing pressure.
DTC Brand Founder / CEO
Sets a monthly profit target, finds the required unit volume, and works backward through their ad spend model to check whether the target CAC allows for that many orders.
Glossary
Break-even analysis — key terms
Every important term you'll encounter in this calculator and the broader topic.
- Break-even point
- The exact unit volume or revenue amount at which total income equals total costs. Zero profit, zero loss. Every unit above this point generates operating profit.
- Contribution margin (CM)
- Revenue per unit minus all variable costs and marketplace fees. The amount each unit sold contributes toward covering fixed costs. The driver of break-even speed.
- Contribution margin ratio
- Contribution margin as a percentage of selling price. A 50% CM ratio means half of every dollar in revenue flows toward fixed costs and profit.
- Fixed costs
- Costs that do not vary with sales volume: rent, salaries, software subscriptions, platform fees charged per month (not per unit). They must be covered regardless of how much you sell.
- Variable costs
- Costs that scale with every unit sold: product cost (COGS), fulfilment fees, packaging. They rise and fall directly with sales volume.
- Margin of safety
- The buffer between current sales volume and the break-even point, expressed as a percentage of current volume. Shows how much sales could drop before the business hits a loss.
- Marketplace fee rate
- The percentage of selling price charged by a platform for each transaction. Amazon referral fees: 8–15%. Etsy: 6.5%. eBay: 10–12%. Reduces the effective revenue per unit before CM is calculated.
- Operating profit
- Revenue minus all costs (fixed + variable + fees). The profit generated by operations before interest and tax. What break-even analysis aims to optimise.
Help & answers
Frequently asked questions
Everything you need to know about how the Break-Even Point Calculator works.
01What is the break-even point?
The break-even point is the exact number of units (or revenue amount) at which total income equals total costs — profit is zero. Every unit sold above this point generates operating profit.
02How do you calculate the break-even point in units?
Break-Even Units = Fixed Costs ÷ Contribution Margin per Unit. Contribution margin = Selling Price − Variable Cost per Unit − Marketplace Fee per Unit. For example: 3,000 fixed ÷ 17.75 CM = 170 units.
03What is contribution margin and why does it matter?
Contribution margin is what each unit sold contributes toward covering fixed costs after variable costs are paid. A higher CM means fewer units are needed to break even — it is the single most important driver of break-even.
04How does the marketplace fee affect break-even?
Marketplace fees (Amazon 8–15%, Etsy 6.5%, eBay 10–12%) reduce the effective revenue per unit, lowering your contribution margin and pushing break-even higher. This calculator subtracts the fee from selling price before computing CM.
05What is margin of safety?
Margin of safety = (Current Units − Break-Even Units) ÷ Current Units × 100. It shows how far your current volume is above break-even. A 20% margin of safety means sales could drop 20% before you start losing money.
06How many units do I need to sell to hit a profit target?
Units for Target Profit = (Fixed Costs + Target Profit) ÷ Contribution Margin per Unit. Enter your monthly profit goal in the optional field and the calculator shows the unit count required.
07What is a good break-even point for an ecommerce product?
Fewer than 100–200 units per month is sustainable for most small sellers. Above 500–1,000 units before break-even typically indicates either high fixed costs, thin margins, or high platform fees that need addressing.
08How does a 10% price drop affect my break-even?
A 10% price reduction reduces your contribution margin — if CM drops from 17.75 to 14.78 on a 35 selling-price product, break-even climbs from 170 to 204 units. The calculator flags this sensitivity so you can price with a cushion.
09What is the difference between fixed costs and variable costs?
Fixed costs (rent, software, salaries) do not change regardless of how many units you sell. Variable costs (COGS, fulfilment, packaging) increase with every unit. Break-even analysis separates them to find the exact volume where both are covered.
10Can I use this break-even calculator for Amazon FBA?
Yes — enter your FBA fulfilment fee plus product cost as the variable cost per unit, and your Amazon referral fee % (typically 8–15%) as the marketplace fee rate. Fixed costs include your storage fees, account subscription, and any software tools.
11Does this break-even calculator work in any currency?
Yes — fully global. Enter any currency and all results display in the same currency. Switch region via the globe icon in the header to change the currency symbol.
12What happens if my contribution margin is negative?
A negative CM means each unit sold loses money — you can never break even no matter how many you sell. This happens when variable costs plus marketplace fees exceed the selling price. You must raise the price or cut variable costs first.
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Ecommerce Seller Operations
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financial profitability
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Global · 9 markets
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Topics
break-even point calculatorbreak even analysishow to calculate break evenbreak even unitscontribution margin calculatorbreak even revenueecommerce break evenfixed costs variable costs break evenbreak even formulaunits to break evenmargin of safety calculatortarget profit calculator
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